Banks competing for kid’s deposits

Right now banks are not only competing for our money, but for the deposit dollars of our children. They are offering bonus rates, fee free accounts, kids newsletters and clubs, piggy banks and gimmicks. Most importantly they are offering some seriously high interest rates for children’s accounts.

“The Bankwest Kids Bonus Saver with a 10 per cent bonus interest rate offers the best interest rate on the market,” said Shaun Cornelius, chief executive of financial comparison website Infochoice.com.au. “Another competitive product is Suncorp’s Kids Savings Account with 5.25 per cent maximum interest rate.”

Westpac have upped the promotional interest rate on their Kids Reward Saver account to 5.95 per cent for under 12s. That rate is available for four months on accounts opened by the 9 May 2010. An ongoing rate of 3.4 per cent per annum is paid when a deposit (and no withdrawals) are made during a month, otherwise the kids get 1 per cent. A similar deal is available from Westpac owned St George Bank.

Commonwealth Bank have long been the major player in the children’s banking market, and have recently put more money into their school banking program. Commonwealth Bank doesn’t charge fees on their accounts for students.

Source: Courier Mail

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