Hi guys,
Just wondering if anyone knows of any bank accounts for children (babies) that are fee free and offer a good interest rate? I've seen fee free accounts but horrible interest rates like 1.75% and accounts with higher interest rates usually have extra requirements e.g. additional deposits each month. Any recommendations? My baby is not going to get pocket money for a while - so additional deposits will not happen that often!
Thanks.
bankwest kids bonus saver requires deposits between $25-$250/mth and no withdrawals
best for anyone is rabo
http://www.ozbargain.com.au/node/83409#comment-1084190
I thought the children's bonus saver is mainly for the parents where it has relatively high interest rate (8%) but you cannot keep a lot of money in there so the interest income does not exceed the tax-free threshold for the minors?
After 12 months, everything over $1 in their Kids’ Bonus Saver account will be swept to their linked Bankwest Children's Savings Account so they can start their savings all over again.
So after a year, I would have to revisit this bank account issue again because the Children's Savings Account interest at the moment is 1.75%… and what tonester said below about monthly deposits with no withdrawals.
Is term deposit an option? But minimum amount is $5,000. No need additional deposit each month, just let that $5,000 'roll'.
Nah, too small an amount at this stage. Just got some money from rellies for bubs - so wanted to start an account for her.
Just a thought from our experience - since we have an offset, we like to keep as much cash in the account as possible so we use YNAB to keep track of the children's account balances by assigning a category.
Westpac Saver Rewards is what I opened for my daughter. As long as a minimum of $1 gets deposited each month, you get the full 5.8 percent interest. This was the best from all the research I did.
I suppose they may have changed the interest rate since you last did the research… but now the minimum deposit is $50/mth. :(
This looks like a different account to what I opened for my daughter.I just opened the account last month (I have just given birth and got the birth certificate to do the account opening). It is a non transactional account. Money goes in but doesn't come out. We wanted to open a savings account to teach our daughter (in the future) of the power of compounding interest and good savings habits. I popped into a Westpac branch and they opened it on the spot. I gather this account is a loss leader product like a McDonald's 30 cent ice team cone.
Do you have a link to more info about the account you opened?
congratulations re baby… :-)
Hi amelyn,
Not sure if this going to help you. Below is a link from choice dated back in May 2012.
It listed a number of option, but obviously the interest rate has drop about 0.5% since then.
http://www.choice.com.au/reviews-and-tests/money/banking/sav…
If Westpac is to pay 5.8% (highly unlikely still pay 5.8% after the recent interest drop), that would be some restrictions impost on the account, eg. Bankwest 8.0% kids saver acc.
Some Westpac home loan's customer would have an interest lower than 5.8% after the recently interest drop.
Thanks. That's very helpful. I think I just found the account muimuimorris is talking about. Might just open that account.
4.92% p.a. variable interest when variable bonus interest applies, paid monthly:
0.01% p.a. standard base variable rate
4.91% p.a. variable bonus interest monthly when a deposit of any amount and no withdrawals are made each month
Free withdrawals (when a withdrawal is made the variable bonus rate won't apply)
Anyone can deposit money into the Kids Reward Saver account at a Westpac branch or through Online Banking (by providing the BSB and account number)
Access your money at any Westpac branch
Can be opened for a child as a trust account.
I can do $1 deposits monthly easily, :)
Just wondering why not open Bankwest 8% kids account instead?
You have 1 year to find your next best account :).
minimum deposit of $25/mth.
Saving my dosh for other expenses and the mortgage as I am currently on mat leave.
Hi Can you share more info or link to the 8% bankwest option. I am not able to find this
thanks
Do you want branch access to the money, or is online access ok?
Online is ok. Ideas?
There are some credit unions around which seem to offer good online only accounts.
I know a number of people who work at a religious based financial institution which offers saving account to students in Lutheran schools (school banking) as well as the general public. From memory are offering 4.25% interest at the moment. Embarrassingly their website is down at the moment, so I won't offer a link, but I am sure there are a number of online accounts like it.
BankWest has currently the best rate of 5.75%?
Bank West is offering 5.75%
Can you please provide a link as I can borrow money for less than that
earn the Bonus Rate paid each month when $25-$250 is deposited and no withdrawals are made.
Lol don't get too excited about the 5.75 %
try the bankwest children's saver