I have the CBA Youthsaver account for my two boys. They’re not earning a lot of interest, and after ringing CBA I found that I need to be making regular deposits into their accounts to accrue the bonus and credit interest. I have looked at investment bonds, but they require $100 a month and that is a bit hard for a sole average wage earner with a wife, kids, mortgage and bills. Is there a better way to set my boys up, or am I missing something?
Most kids’ bank accounts are marketing gimmicks.
Having said that, the best account is the CUA Youth eSaver, which pays a variable 4% per annum on balances up to $5,000. That’s good for short-term saving, but you really don’t want to save long term for your kid in a bank account.
If you have a longer timeframe (say seven years plus), you could invest in your wife’s name (the lower income earner) with an app like Raiz, where you can kick things off with a few bucks, rather than the higher amounts you need for investment bonds..
Regardless of where you choose to save, the fact that you’re saving some money for your kids tells me you’re already on the right track: the number one predictor of raising financially fit kids is being good with money yourself.