Banks are not always doing it for kids

Banks are not always doing it for kids

high interest rates for savings accounts for children hidden fees, conditions and other traps in the fine print. Image: File class = “image-source”> Source: available

Parents warned on accounts with bonus rates

Savings

could be whittled away by factors related

Parents, you will apply the criteria of your account

Financial comparison website Rate City watchdog and consumer choice has warned parents to open accounts with bonus rates for children and young people.

Members of the database shows that a third of children 57 bank accounts offer bonus interest rates, but spokeswoman Michelle Hutchison said some savings could soon be reduced away from the conditions attached.

“Think about how you want your child to use the account, if it is to save up money and not using it because these high interest accounts to encourage you to maintain it very well , “Ms. Hutchison said.

“But if you intend to let your child draw you may want to look at the taxation of transactions and not worry about interest rates.”

The average rate for a balance of $ 500 for all accounts is 2.68 percent, but with conditional bonus rate can reach up to 8:01 per cent offered by children’s Bonus Saver BankWest.

catch is, however, limited to a BankWest account depos it of $ 250 each month and the money is transferred to a lower deposit account every 12 months as a high rate can not be collected. And if your child draw any money they won 00:01 percent interest rate for the month.

Cairns Penny Savings and loan offers the second highest rate of six percent higher for its first account of the Penny Saver, without any conditions, says city rates.

third highest Kids by Westpac account at 5.65 per cent bonus, provided there is a deposit and no withdrawals per month.

OPTIONS said parents who are looking for an account for their child should apply the same criteria that would account for their own savings, and be prepared for children to move their money, if account does not deliver.

spokeswoman Ingrid Just said that some banks to transfer money into an account automatically when the child reached the age limit on the account.

“If this happens, look at the circumstances and the interest rate for the new account, a nd make sure it is free,” Mrs. Only said.

“Children can learn valuable lessons by having a savings account where they play an active role.”

Accounts Top 10 children are listed in the highest degree for a $ 500 balance

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