What you are talking about is an investment product, not a savings account.a savings account
Hey Brendan,Pay down your mortgage.
Risk-free
Tax-free
Costs-free
Keep an account on Excel with the child's name on it and watch it grow as you make the overpayments.
Brendan
Its currently made up exclusively of there children's allowance earning zero is correct.It's different if it's your kids' own money.
But some people put money aside for their children's education. So they have €30k in the credit union earning nothing, while paying 4% on their mortgage. This costs them €1,200 a year. They would be better off paying down their mortgage.
Brendan
I don't understand this either. If I pay €30k off my mortgage then my mortgage will be cleared 2 years earlier, but when I send my kids to college, I won't have €30k to pay for their accomodation.The source of the money is irrelevant.
But you have been building up this large amount of money earning nothing while paying interest on your mortgage.
If the money is not in their names, withdraw it and pay down your mortgage.
Brendan
I don't understand this either. If I pay €30k off my mortgage then my mortgage will be cleared 2 years earlier, but when I send my kids to college, I won't have €30k to pay for their accomodation.
Long time horizon over 10 yrs
when I send my kids to college, I won't have €30k to pay for their accomodation.
Paying more than you need to isn't a measured approach.I take a measured approach
The source of the money is irrelevant.
But you have been building up this large amount of money earning nothing while paying interest on your mortgage.
If the money is not in their names, withdraw it and pay down your mortgage.
Brendan