Hi Guys, Does any one have an ING account? I was going to buy another property but I am taking my time I want to see if the demand for housing will slow down a bit. This means I can save a better deposit. ING are paying around 6.45% on interest know with a 30k initial deposit I might make 2k+ on interest. Once I get the interest and transfer into my normal account will I have to pay any tax? Or will I get the full amount
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I have had an ING account for about 10 years. Don't use it a lot these days as even at 6.45% interest, the NETT RETURN is woeful.
We throw $30 per month ($1 per day) in it for our 6 year old' son's IP deposit. A token effort mainly; he gets to see the deposits in the on-line account, and it gets him brainwashed towards being a property investor! Been doing it since he was 5 and could understand how money works.
If you factor in tax on the interest you earn (yes; you'll pay tax on it), and inflation on the capital, your nett return is probably something like 2%. WOOHOO!
Having said that, if you are saving for a deposit on your first IP or PPoR, and you have no other money-making schemes you are good at, then this is the best and safest vehicle for your money until you are ready.
You will get the full amount of your funds after you transfer it back to your normal Bank account, but you will have to factor the interest into your end of year tax return.
Being as bored as I am tonight I have worked out that if you started this $30 a month when your child was born and the interest rate was 6.45 all the time and if you paid tax from this from your own money and not from this fund then on your childs 18th birthday they will have $12,250.87.
Thats pretty cool. A nice headstart and also you will have been teaching your child good saving habits. Throughout this childs early life they would have been shown how to save and may have added to this account as they went.
Chris.
DraconisV wrote:Being as bored as I am tonight I have worked out that if you started this $30 a month when your child was born and the interest rate was 6.45 all the time and if you paid tax from this from your own money and not from this fund then on your childs 18th birthday they will have $12,250.87.
Thats pretty cool. A nice headstart and also you will have been teaching your child good saving habits. Throughout this childs early life they would have been shown how to save and may have added to this account as they went.
Chris.
That's the idea.
Another thing we do, which I learned from the Rockefellers (an interview with one of the sons in a mag I read once) is we give our son $6 pocket money every week. It was $5, but he's 6 now, so we add a dollar every year.
I give him 6 x $1 bills (USA), and then he has to give me back $1 for his investments/savings.
I then ask him what the $1 is for and he says; "for my house".
He gets to spend the $5 on whatever he wants. If it's more than $5; and it nearly always is, he has to save a few weeks worth.
He hasn't worked out yet that $1 per week doesn't add up to $30 per month in the Bank account, but you can see where I'm going with all this.
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