Kuripot-TIPS # 03 - Open a Kids saver account and avoid paying tax up to $420 interest gain

Best Kids Saver account: "Select Encompass" with 5% interest rate


Select Encompass Credit Union has been providing banking services to the community for over 60 years.


  - A great tiered interest rate of 5.00% pa on all balances up to $5,000, followed by 2.00% pa for any amount between $5,001 & $10,000
  - No account keeping fees
  - No minimum monthly deposits
  - Available to children and youths 0-17 years of age


Link: https://www.secul.com.au/kickstartsaver


Why I pick Select Encompass ?
* Other kids saver account may have higher interest rate but it requires a regular deposit and some has restriction of NO withdrawal.
* Most banks now can transact online so I don't mind if they only have a few branches. as long as I can transfer in/out the money online
 
 
Certified documents you need to submit online:
1. Child's Birth certificate
2. Medicare card
3. Parent's drivers license or passport

Advantage of having Kids saver account ?
- Kids Income threshold is $420 before it gets taxed 

Note: Check ATO website regarding tax on Children's savings accounts as the policy may changed at the time of posting
https://www.ato.gov.au/Individuals/Investing/In-detail/Children-and-under-18s/Children-s-savings-accounts/