Starting early: A guide to saving for your child

Begin saving for your child today. Starting early to save for your child allows time and compound interest to work in your favour. With options starting from as little as ten euros a month, you can open a savings account, a custody account, or an equity savings account for your child. Explore the options below.

Start investing for your child in eBanking

  • Why it's crucial to start saving early?

    The key to building a substantial nest egg for your child is to start early. For example, by setting aside child benefits in a dedicated savings account, you prepare for unexpected expenses and significant future investments like a driving license, educational expenses, or even a first home.

    ”Case study: Pete's first bicycle”

    Next year, Pete will celebrate his third birthday. His parents plan to gift him a bicycle and have begun setting aside €15 monthly in his savings account. By his birthday, they will have accumulated €180, sufficient to purchase the bicycle.

    The earlier you start saving, the more the funds will accumulate compound interest, and the larger the total pot will grow. You can save regularly each month or perhaps once a year for a birthday or Christmas gift. Choose a savings amount that suits your situation.

  • Investing in a fund for your child's future

    Investing in a fund is an effective way to build a financial foundation for your child's future. Starting early maximises compound interest, significantly increasing the growth of your savings. Begin with as little as ten euros a month and adjust your contributions as needed. With expert fund managers at the helm, managing your investment requires no more effort than regular saving.

  • Opening an equity savings account for your child

    Open an equity savings account for your child by contacting our customer service at 0200 2590 Mon–Fri 8–16 (local network charge/mobile call charge). This account type is ideal if you plan to actively manage investments, as it allows for reinvestment of dividends and capital gains without immediate tax implications, enhancing the growth potential through compound interest.

    Learn more about the equity savings account

  • Making tax-free donations to your child

    When making donations to a child, understanding tax implications is crucial. You can donate up to €4,999 tax-free over three years (equivalent to €138 per month) per donor. For larger donations, the recipient may incur gift tax. If you're considering substantial gifts or intergenerational property transfers, our team can guide you to the best solutions for your family.

    For more information on gift tax, visit: vero.fi.

  • When your child becomes an adult

    Funds saved or donated in an investment fund are solely the child's property, and guardians have no access to use them. Upon reaching adulthood, the child gains complete control over their savings and investments, terminating the guardians' decision-making authority. Simultaneously, parents' access to the child's accounts and assets is automatically revoked. However, once the child obtains their bank codes, they have the option to grant access rights to their parents through their own eBanking.

    For more details on managing a child's assets, visit dvv.fi.


Are you the child's grandparent, relative, or godparent?

As a grandparent, relative, or godparent, you can effortlessly contribute to a child's future savings. Funds from occasions like birthdays and Christmas can grow significantly over time.

Here’s how you can start saving in a fund for a child:

  • Guardians must open a Danske Trade Online agreement for the child, available at no cost for minors. Note that only guardians can initiate this agreement.
  • You can deposit funds into the child's Danske Trade Online account either as a one-time or recurring transaction. These funds can then be invested by the guardian in a chosen fund, either as a single purchase or through a continuous investment plan.
    You will need the account details from the child's guardian to make transfers.
  • As a Danske Bank customer, you can establish a recurring fund investment plan directly from your account to the child's investment agreement. This allows you to select and modify the investment instrument as needed.
  • To set up a continuous fund investment plan, contact our investment experts at 0200 2590 Mon–Fri 8–16 (local network charge/mobile call charge).
    You will need the child's custody account or fund portfolio number, which can be obtained from the guardian.

Interested?
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