How to save for education
There are many options available when it comes to saving for education.
Selecting the right one for you can make a big difference in helping you reach your goals.
Education savings funds provide both flexible and disciplined ways of saving and also have unique tax benefits that may not be available with other savings and investment products.
It is important to consider your personal and financial circumstances when selecting an investment strategy.
The table below compares a range of common savings and investment products to help you decide on the best option for your savings objectives.
|Bank Account||Term deposit/target saver account||Mortgage redraw||Managed fund/unit trust||Insurance bond||Education Saving Plan
|Tax effective||Taxed at individual marginal rates. Could be as high as 47%||Taxed at individual marginal rates. Could be as high as 47%||Taxed at individual marginal rates. Could be as high as 47%||Taxed at individual marginal rates. Could be as high as 47%||30%||30%|
|Timeframe||1-3 years||1-3 years||1-10 years+||3-10 years+||10 years+||3-10 years+|
|Specific for education||No||No||No||No||No||Yes|