Growth Bonds

A tax effective investment that rewards those who wait.

The AMP Growth Bond is a simple tax-effective investment, perfect for those saving for a mid or long-term goal. It's a convenient way of setting aside money for a child's education but also a great way to save for something like a wedding, a house deposit or the trip of a lifetime. Unlike some other investments you can access you money whenever you need to although this may reduce some of the tax benefits.

You can start a Growth Bond for as little as a $1,200 initial payment or $100 a month and the management fee is one of the lowest in the market for comparable products.

The Growth Bond is a tax effective investment, with earnings taxed at 30%. So, if you're paying more than 30% income tax, your Growth Bond earnings will be taxed at a lower rate, and, you can increase your investment up to 125% of the previous year's contribution to take advantage of this benefit. To gain most tax advantage, hold your investment for 10 years from the date you made the investment, don't make withdrawals or invest over the 125% limit and you won't pay any income tax on the earnings when you do withdraw the money.

Finally it's easy to manage and you don't even need to include the earnings in your annual tax return unless a withdrawal is made in the first 10 years, and if you are saving on behalf of a child you can use our Child Advancement version and transfer ownership to the child at a nominated age (between 10 and 25 years).

It's that simple. So to start saving for tomorrow, talk to us today.

What you need to know

The information on this page has been provided by AMP Life Limited (ABN: 84 079 300 379) AFSL 233 671 the issuer of AMP Growth Bonds. Contact ABH Financial Services to enquire about this product.

The advice is not based on your personal objectives, financial situation or needs. Accordingly you should consider how appropriate the advice is to those objectives, financial situation and needs before acting on the advice and, before buying any financial product, you should read the Product Disclosure Statement.

'Cost of education' digital advertising

The cost of education figures provided in the digital advertising are indicative only. They are based on:

• The cost of raising a child from NATSEM Report 18, "Honey I calculated the kids....December 2007. Figures based on a 22yearold university graduate. The report is available here (Saved Local)
  
• The cost of university education is based on Sydney University HECs fee schedule as at March 2010.
  
• For specific information relating to your needs, please consult with one of the advisers at ABH Financial Services.