Saturday 29 September 2007

Best Saving Account for Children

I'm always keeping and eye out for what savings and investments are best for DS1 and DS2. I recently learned that the BankWest Kid's Bonus Saver Account is paying 10% interest on the entire balance, provided they make a deposit in the month of between $25 and $250 and no withdrawals. The Kid's Bonus Saver Account has to be linked to a BankWest Children's Saving Account, but this account has no fees and no minimum balance. The account is designed for the specific benefit of the child but it must be opened and operated by an adult. These accounts are only available for children up to the age of 15 - when they reach 15 they'll be automatically converted to the Teen Scheme account. The Children's Saving Account provides online access, and you can make Direct Credits into the account. The interest rate on the Children's account is still a reasonable 3.25% on balances between $0 and $5000, but you'd want to keep most of the money in the kid's account and just accumulate enough in the Children's Saving Account to be able to make a $25 deposit in the linked Kid's Bonus Saver Account each month.

Copyright Enough Wealth 2007

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