Child bond accounts
Child bond accounts
Tax-effective ways to save for a child or grandchild's future.
Tax-effective ways to save for a child or grandchild's future.
Investment bonds, including education bonds, can be a simple way for parents and grandparents to save for a child's future. We explain how they work, whether they suit your situation, and how they compare with other ways of saving for children.
Investment bonds, including education bonds, can be a simple way for parents and grandparents to save for a child's future. We explain how they work, whether they suit your situation, and how they compare with other ways of saving for children.
Who it’s for
Who it’s for
Parents saving for school or university costs
Grandparents who want to help with a gift
Families looking for a long-term, hands-off savings option
Anyone comparing bonds with other investments for children
Parents saving for school or university costs
Grandparents who want to help with a gift
Families looking for a long-term, hands-off savings option
Anyone comparing bonds with other investments for children
How we help
How we help
Whether an investment or education bond suits your goals
Choosing the bond and investment options
Setting up regular contributions within the rules
Planning when and how the money passes to the child
Reviewing the plan as the child grows
Whether an investment or education bond suits your goals
Choosing the bond and investment options
Setting up regular contributions within the rules
Planning when and how the money passes to the child
Reviewing the plan as the child grows
Good to know
Good to know
Earnings inside an investment bond are taxed within the bond at up to 30%, so you generally do not pay personal tax on earnings each year.
After 10 years, withdrawals are generally free of further personal tax, provided contributions follow the 125% rule.
Under the 125% rule, each year's contributions cannot exceed 125% of the previous year's, or the 10-year period may restart.
Some education bonds offer extra tax benefits when money is used for eligible education costs.
Earnings inside an investment bond are taxed within the bond at up to 30%, so you generally do not pay personal tax on earnings each year.
After 10 years, withdrawals are generally free of further personal tax, provided contributions follow the 125% rule.
Under the 125% rule, each year's contributions cannot exceed 125% of the previous year's, or the 10-year period may restart.
Some education bonds offer extra tax benefits when money is used for eligible education costs.
Common questions
Common questions
Can a bond be held in my child’s name?
Usually a parent or grandparent owns the bond and nominates the child. Some products let ownership pass to the child at a set age.
What if we need the money before 10 years?
You can usually withdraw, but part of the earnings may be taxed at your personal rate, with a tax offset for tax already paid inside the bond.
Are bonds better than saving in a bank account?
It depends on your timeframe, tax rate and goals. We compare the options with you before recommending anything.
Can a bond be held in my child’s name?
Usually a parent or grandparent owns the bond and nominates the child. Some products let ownership pass to the child at a set age.
What if we need the money before 10 years?
You can usually withdraw, but part of the earnings may be taxed at your personal rate, with a tax offset for tax already paid inside the bond.
Are bonds better than saving in a bank account?
It depends on your timeframe, tax rate and goals. We compare the options with you before recommending anything.
This page is general information only and does not take into account your objectives, financial situation or needs. Consider the relevant Product Disclosure Statement and Target Market Determination, and seek personal advice before making a decision.
This page is general information only and does not take into account your objectives, financial situation or needs. Consider the relevant Product Disclosure Statement and Target Market Determination, and seek personal advice before making a decision.
Talk it through
Talk it through
A free, no-pressure 20-minute call to see if this advice is right for you.
A free, no-pressure 20-minute call to see if this advice is right for you.
Related reading
Related reading
Investment bonds for kids: how the 10-year rule works
Your 2026–27 end of financial year checklist
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Ready for a plan you can grow into?
Book a free, no-obligation 20-minute call. We’ll listen, answer your questions and be upfront about whether we can help.
Book your free call
No obligation. General information only until we provide personal advice.
Ready for a plan you can grow into?
Book a free, no-obligation 20-minute call. We’ll listen, answer your questions and be upfront about whether we can help.
Book your free call
No obligation. General information only until we provide personal advice.