Investing money for children: the top 5 ways to save
Do you want to invest money for your children? Excellent! The best options Invest money for your children, In this article we summarize briefly and crisply for you.
Some banks offer extra options and products especially for children on. Of course, you should use this, because you get extra conditions, premiums and grants from the state for the investment of your children.
We show you which investment is best for your children and what you should pay attention to if you want to invest money for your children.
Saving money for children: the top 5 options
The children’s depot
A children’s depot is ideal for investing money for your children. This will later allow him to pay for his studies, buy his first car or have an emergency egg at hand for emergencies. Therefore, you should start investing money for your children early on. Those who save earlier have more later!
So you should give your child a meaningful gift from birth. Shares or ETFs can help you save a fortune in the account for your children. If you have no knowledge of ETFs yet, you can find more information in our article ETFs.
A very easy way to open a children’s depot is OSKAR *. OSKAR is an ETF-based wealth management that you can use ideally for your children or even your whole family. Within 5 minutes you can set up a savings plan here that matches your risk profile. You can start saving from as little as € 25 and involve your whole family in the investment for your child. At the same time, OSKAR is a very cheap option to invest money with ETFs. OSKAR * costs you 0.8% to 1% p.a. and you are relieved of all investment decisions. Therefore, OSKAR is ideal for beginners.
Alternatively, you can of course open a children’s depot yourself and select your own ETFs. In this case, you will be busy a little longer, should you read more about the matter, have to create a diversified portfolio yourself and will not get such a good digital opportunity to track your performance. However, you save around 0.5% in fees if you buy all ETFs yourself. It is now worth taking a look at OSKAR * and making provisions for your child.
Other alternative options also include call money, fixed deposits, the savings book and mortgage lending. Of course, these positions also appear at the end of the article. Now back to the children’s depot.
We have listed for you how much money you can actually save with your child’s depot with € 100 for your child.
Invest 100 euros in your child’s depot every month
You don’t need much to invest money in your children. If you invest only € 100 for your child in a child’s depot every month, you have to Saved 33,750 euros for 18 years. A course of study costs an average of 30,000 euros.
| 1. year | 2 years | 3rd year | 4th year | 5th year | 10th year | 15th year | 16th year | 17th year | 18th year |
| 1200 € | 2460 € | 3783 € | 5172 € | 6631 € | 15,093 € | 25,894 € | 28,389 € | 31,008 € | 33,759 € |
The reason for this is the compound interest, which has a strong impact on the growth of your wealth. So you actually only saved 21,600 euros for your child over 18, but you get 33,750 euros.
These are 56% more than if you hadn’t used a child’s depot. We assume one average return of 5% per year. In the past, the DAX alone has been around on average 7.72% per year has grown over the past 32 years.
The 100 euros It may sound like a lot of money that you invest in your child’s money each month, but you can too involve other people in your idea.
They used to grandparents, uncle and aunts transfer an amount to the savings account at birth and present it to the newborn child as a birth gift.
So you can certainly sponsor the godparents, your grandparents, your partner and uncles and aunts for a monthly investment 5 to 50 euros persuade a month.
The baptism, communion, confirmation, the 16th and 18th birthday, the passed driver’s license or the graduation party offer many different ways to top up the monthly amount with individual payments.
Advantages and disadvantages of a children’s depository
Advantages of a depot for children:
✅ A child’s depot is the best alternative and essential yield promising as fixed deposit, call money accounts or ancient savings books and building society contracts.
✅ you saves taxes with a children’s depot. The total is Tax allowance 9,657 euros. This allowance applies to each of your children.
✅ you plan long term and no matter what happens your child’s education is secured. There is more freedom in his decisions and can pay for the year abroad in Australia, part of the first car, the first apartment or his studies himself. Just awesome!
✅ You lay inexpensive with ETFs and can benefit from the high return potential of the stock market. So you make more of your money. At the same time, you can high diversification reach with 2-3 ETFs and yours Saving is automated.
✅ You and your child get started with finances early and financial planning apart. For many families, money is a taboo subject. It shouldn’t be. Financial education is important.
✅ yours relatives, Grandma and Grandpa, all aunts and uncles get a way of meaningful gifts to do for your child. Regular events such as a christening, children’s birthday, graduation party or confirmation and communion increase your child’s savings.
disadvantage a depot for children:
❌ You go in some risk a – stock markets fluctuate.
❌ from the age of 18 your child has full control over the money. It belongs to him. You can’t legally tell him what to do with the money.
DuYou save too a lot of money for your child, it may be that it no longer receives a student loan or is covered by your health insurance. The limit loves at 7,500 euros, which may belong to the child. However, if you earn more than 60,000 euros (gross) with your wife, the Bafög entitlement will lapse anyway.
❌You can in not buy every asset in your depot. The law argues that you should build wealth over the long term. This eliminates risky forms of investment such as warrants or special ETFs. A basic portfolio through an MSCI World ETF, however, is not a problem. However, some banks can cause you problems with an ETF for emerging markets.
The best children’s deposits in comparison
Almost all banks offer child custody accounts. We have once again put our sniffing nose in the sand for you and that best depots for your children picked out. So it will be easy to invest money for your children.
Which share account you should use for your children mainly depends on Prices, “feel good factor” and from that you only shares want to save or also ETFs want to buy. If you do not have any knowledge of your share account yet, you can find out more in our article on accounts for adults. For example, OSKAR * offers you an automated investment for your children.
If you want to do everything yourself, then you should go to a children’s depot. The basic functions for the children’s depot like Online banking, electronic mailbox and market data all banks offer you.
The best depots for children in the overview
| Surname | Products | Free depot | To the website |
| comdirect |
children depot
- savings fund
- ETF Save
- Share-Save
children depot
- “Children’s depot” (for everyone under 30)
children depot
- savings fund
- ETF Save
- Share-Save
children depot
- savings fund
- ETF Save
- Share-Save
children depot
- savings fund
- ETF Save
- Share-Save
- savings fund
- ETF Save
- Share-Save
- savings fund
- ETF Save
- Share-Save
(Deutsche Bank)
- savings fund
- ETF Save
- Share-Save
- savings fund
- ETF Save
- Share-Save
- savings fund
- ETF Save
- Share-Save
As you can see at a glance in the table, many banks offer the option of a child’s account. There are no big differences!
Good depots for children: The DKB *, Sparkasse *, comdirect * and ING-DiBa * have special depot models for children. The deposits are always free of charge and differ only slightly in the trading fees.
The Consorsbank * and Onvista * do not have a special depot for children, but still allow you to open a depot for your child in a very simple way.
Free account and deposit for children
All custody accounts have no custody account fees and many fund savings plans allow ETF savings and share savings. You will usually also get an account from the bank next to the deposit. This is also free of charge.
Children’s depot with ETF savings plan: Free savings
In our pre-selection you have already noticed that almost all depots shown contain an ETF savings plan. By now you probably know what an ETF is, don’t you? Otherwise, let’s ask our ETF article.
An ETF savings plan, share savings plan or fund savings plan is extremely useful for the children’s depot. Because here you pay 100 euros or 50 euros or 25 euros into the deposit every month.
If you bought individual stocks every time, you would have extremely high fees. ETF savings plans often offer free Purchases of ETFs. With OSKAR *, for example, you can set up free ETF savings plans and save € 25, € 50 or € 100 for your child in the long term.
Shares for the children’s depot
If you want to put shares in the children’s depot, we recommend one Share savings plan to set up. This is also possible with most providers. You can see that in our portfolio overview.
You have to decide the exact selection of stocks yourself. Maybe dividend value will be exciting for you. So you can give your child a passive pension at an early stage and they will feel the exciting benefit of shares.
Children’s deposit bonus
Only that comdirect * currently offers a bonus especially for the children’s depot. For the commissioning of a savings plan you get 25 euros. After all, because who knows what 25 euros will be worth in the next 10 or 18 years.
Alternatively, you can open a normal deposit with higher premiums of up to 300 euros. You can find out more in our depot comparison.
Test winner: Best children’s depot
However, all children’s depots are very similar and you are not doing anything wrong with any of the providers above. Our test winner in the children’s depot area is the children’s depot of the DKB *. You can many free ETFs save and can apply for the account quickly and easily online. If you don’t want a special depot that runs under your child’s name, then you should take a look at the Onvista * depot.
You should now quickly start to set aside a monthly amount for your child.
If you are looking for an automated solution for an ETF savings plan for your children, the test winner is OSKAR *. The depot can also be opened quickly and offers you good user handling. Therefore we present the automatic children’s depot in more detail.
Children’s depot with ETF savings plan: the digital alternative
Children’s depots have always been a boring thing. Investing money for children can also be fun! The young company Oskar * has decided to change that. The boys from Karlsruhe / Wiesbaden are building a modern children’s depot.
The Oskar app gives you, your family and of course your child the opportunity to save quickly and easily in ETFs. You get a lot of funds and ETFs without a front-end load, you pay no performance fees and you have no hidden costs.
At the same time you get a great app quick overview and digital asset management. Then Oskar can cost a little and that 0.8% to 1% per year. If you do everything yourself (ETF selection, portfolio opening, portfolio diversification), you can get away a little cheaper with around 0.5%.
The ETFs also cost approx. 0.15% per year. Of course, many of these options also offer you one of the above-mentioned direct banks.
You can find out more about Oskar at: https://www.oskar.de/*
Children’s depot allowance: save taxes
Basically, a child’s depot does not differ much from a normal depot, only that it is in the name of your child. And that’s important! Why?
With a children’s depot you can save a lot of taxes when investing in children. For this reason alone, you should open a depot for your old-age provision and your child’s provision. You can save up to 9,657 euros per year for your child tax-free. So investing money for your children means for you too Save taxes!
Non-assessment certificate (NV certificate)
"If your income, including the investment income in the calendar year, does not exceed the basic allowance of € 8,820 (calendar year 2017) per person, you can apply for an NV certificate in person or by post at your local tax office."
The tax office issues a so-called NV certificate. With this you can have yourself assured that the money remains tax-free. In addition to the € 8,820 there is the saver’s allowance of € 801 and the lump sum for special expenses of € 36. In total, you end up with an allowance of 9,657 euros per year for the depot for your child.
- Children’s deposit free allowance: 8,820 euros
- Saver allowance: 801 euros
- Special expenses flat rate: 36 euros
However, the money then also belongs to your child and from the age of 18 it can freely dispose of it. Because the power of attorney is valid up to the age of 18 of your child.
Open a depot for your children: step by step
With many banks it is not so easy to open a child’s account. The basic rights are with the child from the age of 18. You only act as an authorized person. To save you a lot of work you will find a short list of what you need to open your child’s account:
- You need that first birth certificate and the identification card of your child. As a rule, you must provide the bank with a certified copy.
- Then you still need that Tax identification number. The tax number is often the first letter you get as a parent from the state.
- Then a copy in theIdentity cards of the parents. If you are a single parent, you must also submit the proof of custody.
- Another exception is a copy of the marriage certificate. You will need this as soon as you have different surnames as parents.
Now you have all the documents available and are running the post-identification procedure with the documents from the Bank zur Post. Important! Here, too, both parents have to go to the post office together and identify both of you.
Example of opening a depot for children at comdirect *
That was it. You will now receive mail from your bank with the access data again, making it easy for your children to create money.
Daily allowance for children
Another option is a daily allowance account for your children. The advantages of a call money account are:
- The account can be canceled and paid out at any time.
- Your saved capital is available for you every day.
- You can quickly adjust your payment intervals and the amount of the savings rate.
The Hamburger Sparkasse offers the "mouse account" for children. You get 3% on the first 500 euros. After that, the interest rate drops to 0.01%. So fabulous € 15 a year. Therefore, we would advise you to use the ING-DiBa * call money account. You currently get 1% for the first 4 months up to an investment of 50,000 euros. You can find more information on call money in our call money article.
Fixed-term deposits for children
You have an essential one with fixed deposit accounts low availability of your money. You get more interest for that. Earlier at least. In the current minimum interest phase with interest rates below 1%, fixed-term deposit accounts are hardly worthwhile. Because here you get as much, or rather little, as on the overnight account.
The Targobank * always offers with its junior savings account 1.5% to 1000 euros Saved. The junior account is somewhat hidden on the website. It is best to click here * and then enter “Junior Account” in the search. Here is a brief overview of the conditions:
- Between 1,000 and 5,000 euros there’s only 0.25%
- You get 0.05% interest over 5,000 euros
- The notice period is 3 months.
However, never forget that your child is going through every product deals early with finances. It learns to use an account and a card and will previously self-employed. Therefore, we also recommend a mouse account or junior savings account * before you do anything for your child. The children’s depot is of course the best *.
Savings book for children – the classic
You can of course invest money for your children with a savings book.
However, you should keep in mind that the economy is an annual one Inflation around 1% – 2% Has. This means that the cost of living increases every year.
The current low interest rate or even negative interest rate leaves a lot of money for your child on the side. At Commerzbank there is a good offer here, which can even keep up with many overnight and fixed deposit interest rates.
The Hipp My Baby passbook pays 0.55% to 10,000 euros. In addition you get 20 euro starting credit.
You or a child can withdraw up to 2000 euros per month. The catch is that your child is only may be a maximum of 3 years old. After that, the good interest no longer applies.
Building society contract for children
You can also invest money for your children with a home savings contract. Of course there is still a large level of sentiment. You are responsible for the accommodation and the first apartment of your children.
From a financial point of view, it is worth it Building society contract unfortunately no more than a savings book. Building savings was and is above all rewarding, since the state grants a financial subsidy here.
this grant there is unfortunately not for your children or. only from over the age of 16 years.
Conclusion on investing for children
If you want to invest money for your children, you have 5 easy ways. As you saw with Oskar *, investing for children can even be fun and only takes 15 minutes!
At the best do you drive with one children depot to save money for your children. You can find good children’s depots at DKB *, the Sparkasse *, or comdirect *. You should deal with ETFs in advance, so far as you want to design the children’s depot yourself. Alternatively, with Oskar * you will find a very affordable complete solution.
Overall, you will generate the most return in the long term with a children’s depot. Therefore, you should not hesitate to learn more about the topic.
You can of course also invest money for children with one Call money, fixed deposit or savings book do. However, the special offers for children are often not worthwhile. A daily allowance account from ING-DiBa * is more worthwhile than a special children’s savings book.
If you want to learn more about good offers for overnight money or time deposits, you will find detailed information and comparisons in our article. Click here for the overnight deposit article and here for the fixed deposit article. We will inform you more about the best depots on the market in our depot comparison. A beginner’s guide to investing in ETFs can be found here.
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