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Baby Bank Accounts Lock Rss

OK, Dh and i would like to start a Bank account for DS. However with the multitude of options available to us, we are not sure where to start. In the new year I will be seeking financial advise, but in the mean time it does not hurt to see what is out there, what others have done, and what seems to be working.

I am sure that there are some government options, and high interest, long term savers out there ...

Have u try look at bankwest?we sign up there for our son because apparently they got award winning for kids savings with high interest n they give us free squirrel plush toy for my son.
It is amazing the difference that is out there.

Guess I will have to shop around, walk around and phone around!
I am with a credit union, and some accounts for children (and even adults) are transactional accounts with no or limited interest rates. If anyone is saving (regardless of a child or adult), they shouldnt be saving in a transactional account, it should be a savings account.

A transactional account is one you link a card to, which has low transaction fees and low interest rate. A savings account is one with high fees (for withdrawing, or linking a card to) and higher interest rate. Thus in a savings account you are rewarded for putting money in, but usually penalised for withdrawing or linking a card to it.

Usually with banks and credit unions, the account with the highest rate and no monthly fees is their online only savings account (cant withdraw from a branch). I wouldnt just look at accounts with "youth" or "child" in the account name.

Once you have a large amount (eg $5000+), I would start to look at term investments with all financial institutions as they can have a higher interest rate than a savings account. I would shop around at each maturity date.

We started a bank account for our sons, but we were getting taxed on the interest they earned. So we decided to transfer the money into an offset account that is linked to our mortgage. Yes, we still get taxed for the interest they earn, but we now get interest off our mortgage each month. I just record how much is going into the offset account.
We have opened on line savings accounts with the Commonwealth Bank for the kids. The interest rate is high and fees are low. You can't withdraw the money from an ATm or the Branch so you need to have a normal transaction account with the bank. IF you want to withdraw money you transfer the money on line to your transaction account and then you can get it out at an ATM or the Branch.

The kids also have a Commonwealth Kids Savers account. My DS has recently turned 5 so in the new year sometime we will be starting the pocket money thing with him but making him save a third of his money each week and letting him spend it all in the mid year sales or when he has saved up for what ever he is wanting.
We have a trust fund type account for DS with NAB. You get bonus interest if you make a deposit each month so it ends up being around the 5-6% mark I think. We were told that as long as it's noted as being a trust fund for our son we won't get taxed on any interest earned. The account is still in our names so we have more control over it though.
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