Hi Sisters,
I am a single mamma who works very hard to give my girls all I can. I save $10 per week for each of them into their own account that is to someday be used for them to go to University, not a car or house or holidays, just University. I feel really strongly about giving them this opportunity as it is something i never had the chance to do, so my question is this.... What accounts or style of account or bank is best. Currently I feel that their money could be earning better interest therefore making my hard work go a little further for them. There are regular deposits and never any withdrawals, They also put in a percentage of their Christmas/birthday money at their discretion and are encouraged to "think before they spend" it. (they are young yes but i believe in teaching them about this now so that they can better manage when they are older and they just love getting their monthly statements and watching their money grow) Could any one give me some tips on where to start or how i can better manage this for them. Thank you :)
5 Replies
I would talk to your bank they all have different types etc
Consider a financial advisor too. Tax on childrens accounts is (or used to be anyway) pretty high and if they're in your name you pay the tax on interest. It won't be an issue now but worth looking into for the near future, it really doesn't take long to add up.
I went to the bank and asked them about the options for my daughters account
Currently ME Bank has the highest easy access savings accounts 3.8%. Talk to a financial advisor. As the other poster said - the kids will be taxed at your rate unless you set them up properly. Kids accounts are quite complicated unfortunately
I have done the same with my son since he was around 1 year old, he's now 4.
I am with NAB bank and I love it!! In 3 short years he has $2,000 and he gets double interest if I don't touch his account which I never have. He is now getting just over $5 a month for not touching his account. I only put $20 a fortnight into his account and sometimes I put in a little extra or my grandparents give him some money and it goes into his account.
I highly recommend NAB, I love them! I have been with them for 7 years and my son has been with them for 3 and I have never once had bank fees or anything.