Picture by krasi
Encouraging saving is a sensible step for any parent, and online accounts are easier to maintain and manage than traditional school-based bank accounts (albeit with less immediate involvement from the child). OzBargain poster dragonrabit reviewed the available options for fee-friendly kid-targeted accounts, and concluded that while BankWest currently has the best interest (7%), that’s a promotional rate that drops drastically after the first year. The solution? Take that account for a year, then move the money somewhere else.
It’s a good strategy that could well work for you, although if the sums involved are small, having all the accounts with a single organisation might offset the interest difference. What’s your preferred kid banking strategy? Share it in the comments.
Bankwest Kid Saver Account – 7% Interest Rate [OzBargain]