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Finally after 2 years I opened a bank acc for DS.
ATM its just a normal acc linked to mine, but I was wondering if anyone has any suggestions on high interest accounts. There's not a great deal going in it, only $20 a fortnight, then birthday/xmas money etc. I don't want to touch the money.
What bank are you with for your kids and why?
The kids are accounts are with ANZ, as that is who we bank with. Makes it very easy to transfer over money as I have them linked to my online banking. If they receive cash as a present, I keep it, but then transfer the amount from one of my accounts. It saves a trip to the bank ;)
Just a huge warning. The ATO is very particular with kids bank accounts. If they see you as in control of the account, as far as they are concerned the interest earning is yours to be included on your tax return. If they deem the interest to be the child's, they cannot earn much before it is heavily taxed (the normal tax free threshold does not apply). So if balances get high and therefore interest, you will need to look how it affects your financial position overall.
TFN and ABN information for savings accounts and investments | Australian Taxation Office
I opened ING accounts for the kids. I don't put in enough to get the bonus interest but it gets more than it did at CBA. Their accounts are in DH's name so any interest will go in his tax return. I didn't want to have them in the kids names directly as I want them to have access to it until I say so. It was easy to set up and link. Money can only be transferred in/out via the linked account.
All my kids have dollarmite accounts with CBA. Only $4 a fortnight goes in, but the older 2 like taking their money to school.
Thanks for pointing that put, Spock has a dolomite (or whatever it is called now) with cba. It isher name but we have authority on it (so I can net bank it too). She currently has more money in it than dh and input together thanks to bil collecting all his coins over the year and giving them to her. I never declared her interest or anything on our tax returns, cause as we see it that is her money. I'll have to sus it out properly to see where we stand. Thanks!
Ours are with a high interest account with our bank. Just because its easier to transfer as needed. I did at one stage have it in a term deposit, however once it matured just left it in the account as the interest rate at that stage was comparable anyway plus I had access to the funds. Although its their savings, its also money to be used for their education first and foremost. Interest has always been declared on my tax but thus far has made very little impact in that regard. They have more money saved than I do ;) lol