The traditional way is to take the kids down to the local bank branch and open a savings account right? The staff were really pleasant and apologetic- but there was a problem somewhere. Kid's accounts may only offer one free withdrawal per month, and then charge fees especially for over-the-counter withdrawals. A term deposit paying 6% p. We try to take an open and transparent approach and provide a broad based comparison service. For deposit and payment products, please ensure you read and consider the which you agree to be provided through this link before making any decision about the product s. Westpac: Bump Savings Account The Westpac Bump Savings account offers a total variable interest rate of up to 2. Bankwest is a division of Commonwealth Bank of Australia, which is the product issuer unless otherwise stated.
Think about what you want to achieve-do you want to teach your child about regular savings, interest rates, banking in general, spending etc. OzBargain is an independent community website which has no association with nor endorsement by the respective trademark owners. This rate comprises a standard variable rate of 0. To see how much interest you will actually earn, in real dollar amounts, you might also consider using a savings calculator to compare accounts in detail. It has a headline bonus interest rate of 5. But you can earn 3. The default interest rate is 0.
Bonus rate for first 4 months, reverting to 1. Interest on a term deposit is calculated daily however paid at maturity This is simple interest. Gone are the days of personal relationships with your local bank manager. This article may not be reprinted, reproduced, or retransmitted in whole or in part without the express written consent of SingleMum. They worry that their kids won't be safe with their spouse, who has already proven to be abusive because they caused domestic violence, which resulted in a divorce or separation. To qualify for CommBank's bonus rate of 3. Having someone as a customer from when they are a child, through to when they are an adult is the best kind of customer a bank could ask for.
It also requires a linked transaction account. Some high-interest online accounts are available for this age group. Some of the options listed are available to children. In late 2008 the bank was bought by the Commonwealth Bank, who have promised to retain the Bankwest brand. Cheers, Anndy Hi Jess, Thanks for your question. I like this bank because the customer service is very good.
It's never too early to teach a child the benefits of savings. We hope that the information and general advice we can provide will help you make a more informed decision. You'll also help them earn a little extra pocket money in the process. Older kids would do well to graduate to an online savings account. The details of that account will be needed in order for the two to be linked. I also appreciated that as their parent, I did not have t set up a fee paying account before opening one for my children. Any advice given does not take into account your objectives, financial situation or needs so please consider whether it is appropriate for you.
On a regular basis, analytics drive the creation of a list of popular products. Conditions on many accounts can be confusing, so do a little homework before signing them up. For deposit and payment products, please ensure you read and consider the which you agree to be provided through this link before making any decision about the product s. If you are an existing Bankwest customer you will only need to provide your personal details on the application. The current rate of inflation is 2.
Direct credit You can set up electronic payments into the account to help build the savings quickly. The Kids Reward Saver works along the same provisos as the other banks-make a deposit each month and no withdrawals to earn interest. What ever your formula is it is useless at aclculating compound inteerest, there are much much better ways of doing it. Although we cover a wide range of products, providers and services we don't cover every product, provider or service available in the market so there may be other options available to you. Check out our article on for more tips. Interest calculation Interest is calculated daily on the end of the day balance and credited into the account once a month. Most of these savings accounts have minimum deposits and restrictions on withdrawals so make sure you understand what is going on and teach these to your children to maximise their savings.
The Kick Start Saver is great for teaching your child about the fundamentals of money. Again, people are focussing on the 10% rate. However in terms of interests rates on my savings accounts, while the standard rate is a bit higher than other banks, It would be more beneficial for me to jump around different savings accounts that have high introductory interest rates. Banks may also penalise kids for dumping a pile of coins on the counter. But if all Bankwest wanted was to teach kids that banks aren't their friends: job done.
This bank account is available for children from 0-17 years of age. By Hayley Dean, ellaslist Do you need to open a bank account for your little one but not sure where to start? They did make good on the interest lost by having money sitting in a low interest account waiting to be debited to the new account- necessary, because that is how they required the initial deposit to be made. You don't have to have another account of anything like that. But it then drops to 1. Rate shown is for Personal customers and is subject to change.