Bonus Bonds
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Topic: Bonus Bonds
Posted By: Two Blondinis
Subject: Bonus Bonds
Date Posted: 29 January 2007 at 7:51pm
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Now that I've been reasonably successful with my Fuzzi Bunz sales I want to start putting more money into Caitlin's savings account.
We currently just have an automatic payment going from our bank account into hers (BNZ) but I'm hoping to get into something that will be better for her long-term (We don't want it to be available to her until she's 21). I'm not that keen on investments as we've had our fingers burnt before, but I've read some info and the Bonus Bonds seem quite low risk. I was just wondering if anyone else had these for themselves or their kids? Are they ok to use as savings with top ups if they win the prize draws? Do you actually lose money at any stage? Ta  ------------- http://lilypie.com"> 
 
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Replies:
Posted By: jax
Date Posted: 29 January 2007 at 8:58pm
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I had these when I was young, my grandma (mum's mum) had started them up for me when I was really little, and they eventually built up enough to pay my last year of university tuition. What was left after that went towards a handful of things for our wedding (which wasn't much). I'd say they're a pretty sure thing as far as a means of saving for kids so that they can't access the $$ until a certain age, and as far as I'm aware you can't lose money on them. I used to get the odd $50 or $20 'bonus' in the mail too, which was quite exciting (from monthly prize draws). ------------- Jacquie - Mama to Erin, 13.07.06 - Chief Cat Chaser & Marmite Sammie Eater 
Love many, trust few, harm none. ~Anon~ |
Posted By: my2angels
Date Posted: 29 January 2007 at 9:40pm
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We have them for Kobe and Addison. Every so often we add to them and they can win each month, some of the prizes are actually quite big.
Im pretty sure there isnt really a risk with them and they are so easy. We have it so any little prizes they win are reinvested which would give them more chances to win aswell because every dollar bond you have is a chance to win. When they are older they can decide what they want to do with the money. Oh and forgot to add, they are also very handy if people are stuck for presents. At christmas we just told people they could just buy the kids some bonus bonds rather than presents because they got so many presents!! and all you need to do is give people the number and they can buy some although most actually gave us the cash to put towards it. Kobe collects our neighbours mail for them when they are away and they pay him $10 every month so we just put all that onto his bonus bonds. |
Posted By: sparkle
Date Posted: 29 January 2007 at 10:33pm
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Where do you get them from? Or how do you start it up? ------------- http://lilypie.com"> 
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Posted By: busymum
Date Posted: 29 January 2007 at 10:59pm
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Bonus Bonds are available via any ANZ Bank. My grandma bought some of these for me when I was born, or soon after, and after I started working as a teenager I added to them bit by bit until I had $600 in bonds. There's no risk with them as far as I know, but documents available from ANZ would confirm that. However there's also no guarantee that you'll make anything from them. I had something under $20 aside for about 15 years and never won a cent. After I had $600 I did end up winning a couple of $20 lots. In the end I decided I was better off putting it in a savings account and earning interest... which is what we've decided to do for our kids' savings. -------------  |
Posted By: Two Blondinis
Date Posted: 29 January 2007 at 11:48pm
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So Teresa, over that time where you didn't put anything in did you keep your money?
I guess what I'm worried about is us losing her savings when we're trying to add to them. If that is the case I think I'd rather leave the money in the bank ------------- http://lilypie.com">
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Posted By: lizzle
Date Posted: 30 January 2007 at 7:18am
| my grnadfather had $36,000 in bonus bonds. must have been pretty low risk for him to put his money there. Not sure if they accumulate interest. I know Natiuonal bank does an interesting bank account dedicated to saving for kids education and the the PSIS has a good kids account too. |
Posted By: busymum
Date Posted: 30 January 2007 at 8:01am
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I lost nothing Toni. ------------- |
Posted By: my2angels
Date Posted: 30 January 2007 at 8:06am
| you can also get them at post shops i think. My neice has about $500 and wins all the time, mainly $20 but she has had something like $50 too. I figure until i get it built up to a decent amount the interest they would receive at a bank would be so minimal and then of course you have to pay fees until you reach certain amounts. If the bonus bonds build up to a large amount then i might look at putting them into the bank but otherwise if they even won $20 in a year or two then its more interest than they would have got at the bank. |
Posted By: AlyAyde
Date Posted: 30 January 2007 at 8:12am
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Hi Toni, Bonus bonds is our way of saving for our kids education. We have it set up to auto buy an extra $100 every month. You cant loose money in bonus bonds its safe. And you dont pay tax on the money thats in there. I think the percentage that you gain from it works out about half of what the banks are offering. ie if you add up your wins against the money you have in their its like 4%. But in saying that there is the chance of winning the big one. ------------- Jayde 25/12/04 Alyssa 08/04/03 http://Alyayde.bebo.com |
Posted By: Two Blondinis
Date Posted: 30 January 2007 at 9:19am
Thanks so much ladies! 
I think we're going to transfer her savings into the Bonus Bonds. It really P's me off that a baby's savings are taxed at the parent's income rate with banks, so even if Caitlin doesn't win "the big one" at least I know what we put in there is what she will actually get (with the chance of winning top ups). ------------- http://lilypie.com">
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Posted By: Maya
Date Posted: 30 January 2007 at 10:49am
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I thought if you had an IRD # for your kids and provided it to the bank they don't get taxed? I've never paid tax on any of my kids accounts? ------------- Maya Grace (28/02/03)
 (02/01/06)
The Gremlins:Sienna Marie & Mercedes Kailah (14/10/06)
Lil miss:Chiara Louise Chloe (09/07/08)
Her ladyship:Rosalia Sophie Anais (18/06/12)
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Posted By: Two Blondinis
Date Posted: 30 January 2007 at 12:35pm
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I gave BNZ her IRD# but she still gets taxed at a child rate. I still think that is REALLY unfair! ------------- http://lilypie.com">
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Posted By: jax
Date Posted: 30 January 2007 at 2:00pm
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Yep, Erin pays tax too (we are with KiwiBank). ------------- Jacquie - Mama to Erin, 13.07.06 - Chief Cat Chaser & Marmite Sammie Eater
Love many, trust few, harm none. ~Anon~ |
Posted By: my2angels
Date Posted: 30 January 2007 at 5:25pm
| Bit off the topic but have you guys heard about that savings/investment thing the government is bringing in this year? Apparently they are going to automatically take either 4% or 8% of your pay and put it into an investment thing, you can chose either high or low risk. Basically apart from a few specific situations you cant get the money out for 5 years and they are going ot just start doing it and its up to you to ring them if you dont want it to happen. I hadnt heard anything about it till my friend who has her own business got a letter about it from the ird. |
Posted By: Two Blondinis
Date Posted: 30 January 2007 at 8:19pm
 WTF?!?!? can they really do that?!?!? that's glorified theft surely!------------- http://lilypie.com">
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Posted By: Paws
Date Posted: 30 January 2007 at 9:40pm
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My mum had $60k in bonus bonds and did really well with such a large investement but only becuase she had a greater chance og winning. To be honest even with Caitlin getting taxed I personally think it's not a bad idea to leave the money in a really good savings account and/or flick it to a term investment when you get enough.
With the government savings thing, if you start new employment you have the option to opt into Kiwisaver and that is when the enforced savings come in. Once you are in then you're in and what B is saying is that it won't be able to be touched until you are 55...much like your work super schemes. At the risk of getting slammed I think it's a good idea. Most of NZ is debt to thier eyeballs and live totally outside their budget if they even have a budget. I'm all for anything that can help people save money. Besides 4% isn't that much...it's the amount I had going to my super. ------------- http://lilypie.com"> 
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Posted By: jax
Date Posted: 30 January 2007 at 9:41pm
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------------- Jacquie - Mama to Erin, 13.07.06 - Chief Cat Chaser & Marmite Sammie Eater
Love many, trust few, harm none. ~Anon~ |
Posted By: Paws
Date Posted: 30 January 2007 at 9:52pm
Oh and B just said that the tax on bank accounts gets claimed back when you do a tax return for your child at the end of the tax year.  He said you get most if not all of it back. ------------- http://lilypie.com">
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Posted By: my2angels
Date Posted: 30 January 2007 at 10:20pm
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I think its a good idea, Im just worried that so far there doesnt seem to have been much info around about it, or have i just missed it? I guess until then and I know the ins and outs i just feel like they are dictating what we do with our money, the way it is taken straight out but i do understand that at least that way people are more likely to actually start some savings.
Hmmm just feel a bit uneasy about it. |
Posted By: Two Blondinis
Date Posted: 31 January 2007 at 8:31am
Thanks for the info Gen. No one told us about putting in a tax return for Caitlin (but then the bank didn't tell me to get her an IRD # so that she is taxed less - The dumb @ss at the bank said she would be taxed on MY income 
Lucky I stayed in touch with my antenatal girls who had just done the same or else poor bubs would be charged 33% tax instead of 18% which I still think is too much! I think I'll have a shop around and look at high interest "can't touch for 10 years" accounts for her, at the mo BNZ are being pants! As for the Kiwisaver - In theory it's a great idea! But what about those people that honestly live wage to wage and not through choice and couldn't possibly afford to drop 8% in wages. It's ok for us "financially comfortable" people but not everyone is as fortuntate. ------------- http://lilypie.com">
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Posted By: Paws
Date Posted: 31 January 2007 at 8:35am
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When you claim back the interest it should be all or most of that 18% so you really will get most of it back.
And with the kiwi saver remember that it is still something that is opted into...if you can't afford you don't opt into it. That option is there for you. If you do have any questions Toni just drop me a PM and I'll see if B can answer them re tax and accounts (he's a bank team manager and his bank is one of the providers for Kiwi saver in case anyone was curious.) ------------- http://lilypie.com">
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Posted By: my2angels
Date Posted: 31 January 2007 at 9:27am
| yeah thats what i was thinking, some weeks we are fine but others we live from week to week. And isnt it more you have to opt out of it, like they automatically put you onto it but you have to ring them and say no you dont want to. I would rather I had the choice and say i wanted to be part of it then i would tell my employer to deduct it from my wages, not just that it will automatically happen (but i could be wrong about that side of it) |
Posted By: busymum
Date Posted: 31 January 2007 at 10:43am
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I think you're right Robyn. For us, DH is just starting out in his career on a reasonably low income and we have three kids, so for now it's best for us to have savings that we can access if necessary--recently we did just that to get a bigger house and van. ------------- |
Posted By: Paws
Date Posted: 31 January 2007 at 11:27am
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According to the information B's work has been given you are NOT automatically put onto it...you choose if you want to do it or not. That's as far as we know anyway. ------------- http://lilypie.com">
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Posted By: AnnC
Date Posted: 31 January 2007 at 2:36pm
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Toni - I work for the BNZ and they should of when opening the account told you about your daughter needing an IRD number. What account have you got - if its an achiever saver swap it for a Rapid save - its a higher interest rate only thing is it needs to grow its balance every month for the bonus interest - even if its just by 50c (and can't grow balance by interest alone). I know it sux about kids and ird but its because years ago when they didn't do that parents (or people) were puttng their money into their childs name to tax dodge so now thats why if not IRD number it gets taxed at parents rate. I don't agree with our savings interest being taxed but all the banks have to do it. Why bonus bonds are not taxed is because you don't get regular interest and i have had Bonus bonds for my kids for over 5 years and ended up taking all the money out as I never once won anything so I thought interest in a savings ac was better than nothing even if it was taxed. ------------- Ann 
Also Mum to Josh (15) and Brooke (10) |
Posted By: Bombshell
Date Posted: 31 January 2007 at 10:01pm
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first - Kiwisaver is an opt in if you are already in employment...I wont be doing it cause we are already home owners etc and the big incentive is the ability to get a leg up towards first home etc down the track...
Also your employers have an obligation to let you know about it BEFORE it commences...so you should get letter or email or memo etc about it this week or at latest next week! RE Bonus bonds - we love them and bubs is being set up - we were going to set her up an account ready for baby shower but then we would have had to have told everyone her name!!! Anyways my gma on a widows benefit saved for 2 grandkids and put me through school and uni on them...she also won bits every now and then... Dh and i buy them and also use them to save shortterm - eg his half yearly bonus last year we spent half and then put $2500 into BB for 6 months...we knew we had a no payments / interest free bill of that much to pay at end of that time and didnt want to spend it or have it tempting us...that lot didnt win anything but others have...and at end our $2500 was still there...no interest but no loss either...and it takes seven days for it to be released to your account so no incentive to whip it out and spend it!!! Ive always owned BBs - who knows I might win a big one one day!!! I do recall winning $100 in BB draw when i was 8 or ten years old...that was HUGE!!! As for BNZ - Toni I agree - dont start me...we are with them...but not for much longer!!!  (sorry Ann!)
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Posted By: my2angels
Date Posted: 01 February 2007 at 7:07am
| Forgot to mention about the saver thing, I think the government put $1000 into it if you join up? again could be wrong about that. |
Posted By: my2angels
Date Posted: 01 February 2007 at 7:18am
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Here is a website on the Kiwisaver
www.kiwisaver.govt.nz It says its really for retirement! but you could be eligable for assistance with a home deposit. "KiwiSaver offers a first home deposit subsidy of $1,000 each year of membership in a scheme, up to a maximum of $5,000. To be eligible you must have been saving through a KiwiSaver scheme for at least three years and meet criteria. Income and house price caps will apply. The first home deposit subsidy is administered by Housing New Zealand and will be available from 2010. To find out more visit the Housing New Zealand website." It also if you start a new job after July 07 then you are automatically opted in but if you are already in employment then you can volunterily opt in. Seems to really tie up your money though, what if you have an emergency that isnt classes as emergency by there standards. |
Posted By: Two Blondinis
Date Posted: 01 February 2007 at 7:53am
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sounds a bit dictator style to me because the Govt would rather pay their MPs $$$$$$ and build a million more motorways than put tax payer's money to good use and keep the govt pension going!
So who gets the interest on the Kiwi saver? Is that taxed too? I bet it is! Who would have thought my question would have turned all political? 
Yes we are with the rapid save account and she gets the bonus interest as well. But BNZ started on the wrong foot with me. Took TWO HOURS to set up her account (great when you've got a Newborn! ever BF'd in front of your new bank manager? ). Then when we got her first statement through, we were all excited and wanted to put it away in her "My Firsts" Box. *MR* Caitlin Lilly AND THEN (yes it gets worse) when I called them to say they'd made a mistake and needed to change it to "Miss" as per the birth certificate they wanted a copy of for their records, I was told that I couldn't do it on the phone and had to go back to my Branch. Got to the branch, told "only the customer can request this" "well since your customer is only 2 weeks old I don't think she's going to be requesting any changes on her account any time soon!" *inserts lots of swear words* We finally got it changed but had to wait for her files to be found with her birth certificate and then that had to be sighted by the manager!
Go BNZ!   ------------- http://lilypie.com">
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Posted By: AnnC
Date Posted: 01 February 2007 at 1:32pm
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thats terrible.... you shouldn't have to of done so much of that they could of id'd you over the phone. if i was still at work i would of lodged a complaint on your behalf.. please don't judge BNZ as a whole because of certain branch.. geez you'd think i was still at work lol ------------- Ann
Also Mum to Josh (15) and Brooke (10) |
Posted By: Bombshell
Date Posted: 01 February 2007 at 10:21pm
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Ann ive judged them on 4 branches, 2 managers, numerous customer service people, and "personal bankers" (yeah right!!!) and too many F ups with our accounts...and total lack of understanding (in our expereince) of trusts, companies and how much income people earn!!! I dont send my clients in their direction anymore...and after my leave we are totally refinancing with another bank...couldnt even start to tell u issues like Toni...
Kiwi saver...yep it is basically an aim for retirement scheme...wonder how long it will last really??? but the home loan may help some people...shame we dont have the first buyers deposit scheme here like they do in perth etc...now being given like $15000 to start your first home would be amazing step up for so many wouldnt it? |
Posted By: AnnC
Date Posted: 02 February 2007 at 1:26pm
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i only work for bnz not own it so not offended either way. ------------- Ann
Also Mum to Josh (15) and Brooke (10) |
Posted By: Two Blondinis
Date Posted: 02 February 2007 at 2:27pm
I'm sure there are lovely people (like Ann) who work for BNZ. I was just a bit unfortunate that I got to deal with the worst of the worst of the worst  ------------- http://lilypie.com">
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Posted By: Bombshell
Date Posted: 03 February 2007 at 2:55pm
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LOl Toni dont come out east auckland way to the branches then....OMG!!!
Must look into the tax number thingey for bubs too.... |