kronk

Hi

My kids are preschool age and I'd ideally like to open an account for them each so that when they become adults, they've got some money for house deposit or education, that sort of thing.

I've had a look on google and there seems to be a few good instant access accounts with decent interest rates but was wondering if anyone has opened long term accounts/bonds for their kids?

I think there is one called Australian Scholarship which is a long term thing, think there are tax benefits of using education based savings account but believe there are big penalties if money is not used for education.

Just wondering if anyone has opened long term/childrens savings account and can suggest a good provider?

Many thanks

quoll

Dunno, just opened a Dragon Direct savings account for both my grandkids and put money in them each fortnight and they get around 4.85% at the moment. There are probably other options but that one was easy as pie for me and they are accessed through my internet banking facility.

Trevski

We opened accounts for our two children one was 13 and other was 8, we had a few thousand in them but the ATO piss~'# me off when the BOQ had told them about the saving as it was added to my end of year tax return and we had to pay up money because of the intrest earned on them. By law the banks must tell the ATO of childrens accounts so be carefull

DownUnderPaddy

For now, we are using this for both of our kids (5.75% interest)
http://www.infochoice.com.au/banking...-account/11766

NedKelly

we had a few thousand in them but the ATO piss~'# me off when the BOQ had told them about the saving as it was added to my end of year tax return

Never miss a trick do they!

quoll

http://www.ato.gov.au/individuals/co....htm&page=1&H1

Fair bit of interest before they are charged though.

Australia_bound?

Do you have to pay interest on kids account? Must have missed mine, as kids have one each and never paid any tax

jad n rich

The ATO can find out any interest on any account. They have full access to bank info.

If they dont find it one year they find it eventually and just backdate the tax bill with interest on interest

No escaping them, the banks and ATO also share with centerlink.

IMO they also share with immigration/passports, Ive had letters from them about me being overseas

My Kids have had tax file nos since they were 7/9 as the bank was withholding tax from them.

quoll

Only if they earn over $450 pa interest does someone pay tax. As long as their interest sits under about $3500 pa then they wont pay any but they will get some taken out as payg but can fill in a tax return to reclaim it - see the link above

jad n rich

I think the childrens piggy bank was further raided this year.



http://www.dailymercury.com.au/story...childrens-tax/

NedKelly

Bloody Hell this government are such mean barstewards. Not only that, they have messed up the child payments from family trusts as well. We used to pay my sons school fees from it to get a tax deduction. Bugger they must be desperate.

jad n rich

Also, if you have kids and made deductible super contributions ( self employed mostly ) it used to reduce your taxable income for centerlink purpose eg family tax benefit etc.

Now for all things centerlink and even child support payments they assess your income before the super contribution - big difference.

DownUnderPaddy

With the new changes, the IOOF Wealthbuilder product looks like a good alternative if your kids bank account has more than a few grand kicking about in it......

http://advisermag.ioof.com.au/june2011/tech_QandA

fish.01

Seems to depend on whether the money will be controlled by the children when they're older or spent by the adults (even if spent on the children)...if the former then goes on child's tax, if latter interest added to parents income.

http://www.ato.gov.au/individuals/co....htm&page=3&H3

northernbird

My kids both inherited $20k this year and at the moment it is sat doing buggar all because I can't seem to find out what to do with it. My eldest has a TFN but my 9 year old doesn't. Sorry to hop on the OP but would love to know how best to invest it, safely!