Education funding
Education bond vs offset.
Compare putting education savings into an education bond (tax-effective growth) versus the same money in an offset account against your non-deductible home loan. See the assumptions below.
General advice & assumptions — education bonds
Education bonds are a long-term savings product designed for education costs. The bond provider invests your contributions and pays tax inside the bond (often at company rate). Withdrawals used for qualifying education expenses may be tax-free or concessionally taxed depending on the bond and how long it has been held. This calculator uses an assumed after-fees growth rate — actual returns and tax treatment depend on the specific product and your circumstances.
Offset strategy: Money in an offset account against a non-deductible home loan reduces the interest you pay. That interest saving is effectively a tax-free "return" at your loan rate. This calculator assumes the same regular contributions could instead be placed in offset; it does not account for loan fees or offset account terms.
This is general information only, not personal advice. Consider speaking to a licensed adviser and reading the PDS of any product.
Results
This is an estimate only, not personal advice. Omission of data or unique variable will have a considerable influence on outcomes. Consider speaking to a licensed adviser for a plan tailored to you where personal variables will be confirmed by supporting documents specific to your preferences and circumstances
What to do next
Use these figures when considering education bonds and offset. Read the PDS of any bond product and consider advice for your situation.