BankWest launches Australia's best kids' saving account and national youth saving initiative
More than a quarter of parents have pinched, or have been tempted to pinch, money from their children's savings, according to research1 commissioned by BankWest. This comes despite most parents (almost 9 in 10) saying they believe they set a good example for their children when it comes to managing money.
The research has been released today for the launch of BankWest's Kids' Bonus Saver*, Australia's leading savings account for children. The account attracts a market-leading monthly bonus interest rate of 10% p.a. for children under the age of 15 years - well above its nearest competitor. In addition, the BankWest Kids' Bonus Saver has no account keeping fees.
The Kids' Bonus Saver is designed to encourage children to save regularly by rewarding them when they make regular deposits. Therefore, the high bonus interest rate is paid when a deposit of between $25 and $250 a month is made with no withdrawals. If this doesn't happen (i.e. there isn't a deposit of between $25 and $250 a month or if a withdrawal is made) the rate reverts to a standard rate of 0.01%p.a. for that month only.
In addition, each year on the 12 month anniversary of the account opening, the child's savings 'sweep' into a standard Children's Savings Account which competitively pays up to 4.5%p.a, and kids can once again start saving money in the Kids' Bonus Saver.
According to BankWest's Head of Retail Deposits, Paul Vivian: "For too long banks haven't been offering kids a fair deal. Our new Kids' Bonus Saver changes that. To coincide with the launch, we commissioned research which uncovers family attitudes to money, and it's provided us with ways in which BankWest can inspire parents to help get their kids financially fit."
"Our research shows that many parents think they're setting a good example for their kids, but their actions are doing the opposite. Our new market-leading Kids' Bonus Saver gives parents the opportunity to maximise their children's savings and to teach them to save on a regular basis."
Alarmingly, over half of parents said the number one reason for pinching from their kids' savings was to purchase everyday essentials such as petrol, milk and bread. The second reason was to pay off regular utility bills such as water and phone bills (20 percent) and thirdly, an amazing 16% of parents said it was to afford extravagances such as a holiday or new car!
Paul Vivian continues, "People may be feeling the pinch of purse strings for everyday necessities, but turning to their kids' savings isn't the answer. Parents need to lead by example and BankWest can help. BankWest today launches 'Get Young Australia Saving', a new free website www.kidsaver.com.au providing advice and tips for parents and teachers on how to encourage kids to save."
According to Gay Curtis, money coach and author of Smart Couples' Guide to Money, "Parents need to ensure that they lead by example and instill healthy financial habits and positive views about money at home. This is crucial as many beliefs and attitudes about money are largely formed when people are young. www.kidsaver.com.au is a great, simple to use tool for parents looking for new or further advice on encouraging their children to save."
How the BankWest Kids' Bonus Saver Compares:
| Company | Product | Highest Rate Applied |
| BankWest | Kids' Bonus Saver | 10%* |
| Commonwealth Bank | Youth Saver | 4.31%* |
| Westpac | One Youth | 4%* |
| National Australia Bank | Smart Junior Saver | 3.75%* |
| St George Bank | Happy Dragon | 0.65% |
* Rate includes bonus interest.
Source: www.infochoice.com.au 6 June 2006
Other interesting findings:
· Mums have the stickiest fingers and are twice as likely (35%) to raid, or be tempted to raid kids' piggy banks than dads (16%).
· Parents or guardians who are in part-time work are almost twice as likely (36%) as those in full-time employment to raid, or be tempted to raid kids' piggy banks (19%).
