Education Bonds


Education Bonds are a great way to start saving and investing for your family’s future education needs. They deliver the same benefits as other traditional investments and saving options, with the bonus of additional unique features. These features help make it a flexible, tax effective and dedicated education fund to cover a lifetime of education expenses and more.



What is an Education Bond?

The cost of education is on the rise

Equipping your children or grandchildren with the skills they need to face the challenges and triumphs of the future is important. And we know that having access to a good education is a key part of this.



With over $40 billion spent each year on education from private sources1, the true cost of education is sometimes hard for families to quantify. With additional strain on the family finances an education savings plan has become front and centre for many Australians.



Want to discover the cost of education for your family? Check out our education cost calculator.

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What are the benefits of an Education Bond?





Futurity Education Bonds are designed for you to tax-effectively save and invest to accumulate the funding for your education-purposed objectives. The flexible structure gives you full control and access to your funds at any time, both for making Education Benefit Claims and withdrawals for any purpose.



Plus, Education Bonds offer a level of comfort when it comes to estate planning. Providing certainty for how and when your wealth will be distributed with will-like Bond Estate Nominations to achieve tax-effective inheritances.

Flexibility

Our bond range offers a wide investment choice with options from Australian and International leading fund managers. Plus, unlike other child or education purposed investment and savings products, our Education Bonds offer an unrivalled level of flexibility.



Including the ability to:

  • access capital tax free at any time
  • access the education tax benefit
  • add or remove beneficiaries at any time
  • add a Bond Guardian
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Tax Benefits

Education Bonds have taxation benefits and can provide superior “after-tax” investment outcomes against other investment types.



Tax-Free Contributions:

money paid into the Education Bond doesn’t attract any tax and can be accessed at any time.



30% Education Benefit:

Futurity pays tax on the bond’s ongoing investment earnings at a tax rate of up to 30 percent on your behalf. When you make a withdrawal to fund education, you’ll enjoy a refund of the tax paid by us which gives you an extra $30 for every $70 dollars withdrawn.



Tax-Free Components:
There are various avenues for accessing your Bond. Distributions to you, your Education Beneficiaries and your Estate are made tax-free if planned correctly.
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Dedicated Savings

Lump sum contributions are allowed as well as regular monthly contributions, so you can maximise the benefits of compounding within a low tax environment.



Having a dedicated education fund can help you stay on track towards your goal. Allowing you to be confident knowing your education funding plans are in place. Without the burdensome annual tax reporting required with other types of investments.

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What’s special about Futurity’s Education Bonds?

Futurity offers the first ever Family Education Bond in Australia which gives you discretion to appoint multiple Education Beneficiaries under the one tax-effective, flexible Bond. Alternatively, our Individual Education Bonds allow you to tailor separate investments for each beneficiary.



Our ground-breaking Education Bond product range also offers ‘Will-like’ tax-effective inheritances, so your Bond’s proceeds are distributed to your chosen nominees on a tax-free basis and in line your wishes.

EdSaver versus EdInvestor

You can establish your Education Bond through either EdSaver or EdInvestor

EdSaver

EdSaver provides a streamlined application journey and introduces you to our Family Education Bond’s essential features and offers you a selection from our full Investment Menu. Over time, your Education Bond can grow and adjust as your needs change, and to help you make the most out of your Education Bond we will provide you with information about features that might suit you as your journey continues.

EdInvestor

Through EdInvestor, you can make the most of Education Bond's full set of options including its estate planning and intergenerational planning features upfront. You can also choose whether to set up a Family Education Bond for multiple Education beneficiaries, or an Individual Education Bond with one Education Beneficiary nominated per Bond.

Compare kids education investments

See how Education Bonds in Australia stack up against other ways to save and invest for education

Education Tax Benefit

Access to Funds at Any Time

Earning Potential

Investment Choice

Timeframe

Education Specific

Access for any purpose

Education Bond

Yes

Yes

High

Yes

Long term

Yes

Yes

Investment Bond

No

Yes

High

Yes

Long term

No

Yes

Managed Fund

No

Yes

High

Yes

Long term

No

Yes

Savings Account

No

Yes

Low

No

Short term

No

Yes

Term Deposit

No

No

Low

No

Medium term

No

Yes

Mortgage Redraw

No

Yes

Medium

No

N/A

No

Yes

Appoint multiple Education Beneficiaries under the one tax-effective, flexible Bond.

    Tailor separate investments for each beneficiary.

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      Useful Information

      Access our Investment Options, Cost of Education Calculator and PDS.

      Futurity Investment Options

      Explore our Investment Options

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      Cost of Education calculator

      Calculate the real cost of education

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      Futurity Education Bonds PDS

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