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What is an Education Bond?
An Education Bond is a tax-effective investment product designed to help meet the cost of education.
As long-term, growth investments, Education Bonds can help parents and grandparents attain financial self-sufficiency for their lifelong education goals – whether for themselves or their families.
Education Bonds are investment-linked life insurance contracts between you and the issuer. Only friendly society-based life companies can issue them – and they carry strong legal protections and security measures under the Life Act and subject to rigorous prudential supervision by APRA (Australian Prudential Regulation Authority).
Education Bonds explained
What is an Education Bond?
Compare kids education investments
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
Education Bonds have special tax benefits that can produce superior ‘after-tax’ outcomes as against other investment types, making them a great choice for tax-effective investing.