So Bankwest offers the headline rate of 10% interest on their kids saver account. I’ve got kids who are of the age to get pocket money, so I chaecked it out.
\nThere are some terms and conditions. Basically, you only earn 10% if you make deposits and not withdrawals, and only if each month you deposit between $25 and $250. After 12 month, the account resets to $1 (and the balance is shifted to a lower rate account).
\nYou can’t start with more than $250, and you can’t deposit more than $250 a month.
\nSo what looks pretty nice to start with, 10%!!, actually is somewhat less. If you had $3000 and trickled it in to the account to make the $250 a month maximum deposits, the total interest would be $167.56, or about 5.5%.
\nOf course, there is no reason you couldn’t keep that money in a higher rate saver account before you deposit, but most also have withdrawal penalties. If you used ubank for the balance, it would pay 6.0% on the declining balance. If you started with $3000 and transferred it into bankwest $250 a month, after a year ubank would pay you $82.50.
\nObviously, both these deals are predicated on marketing – you will be ill disciplined in your payments, and once you have an account you will go on to use them for loans\/mortgages\/credit cards etc.
\nBut if you are smart and organised, you can get a pretty nice return, a touch over 8%, or $250 interest a year on $3k. For me, I’ll be trying to scratch up $3000 to deposit in a kids name and see if we can achieve the rates suggested. I’ll post in a year or two to report back. <\/p>\n","protected":false},"excerpt":{"rendered":"
So Bankwest offers the headline rate of 10% interest on their kids saver account. I’ve got kids who are of the age to get pocket money, so I chaecked it out. There are some terms and conditions. Basically, you only earn 10% if you make deposits and not withdrawals, and only if each month youRead more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[5,4,3,6],"_links":{"self":[{"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=\/wp\/v2\/posts\/27"}],"collection":[{"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27"}],"version-history":[{"count":0,"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=\/wp\/v2\/posts\/27\/revisions"}],"wp:attachment":[{"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skeggs.org\/wp\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}