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Childrens savings accounts in the Netherlands
Give your child a head-start with a children’s savings account.
It’s never too early to teach a child the benefits of saving with a childrens savings account. In fact, learning to save from a young age could help your child become more financially responsible in life.
This article explores the range of childrens savings accounts in the Netherlands, helping you decide which could be the best fit for your child.
How do childrens savings accounts work?
Childrens savings accounts work a lot like regular savings accounts in the Netherlands. Such accounts may be used to deposit and withdraw money, as well as earn interest. Childrens savings accounts in the Netherlands also have comparable interest rates to regular savings accounts, usually at 0.15% per annum.
Children’s savings accounts don’t usually have minimum monthly deposit requirements and come with stricter withdrawal limits. Besides this, all children accounts come with maximum age limits. The maximum sign-up age ranges from 11-17 years old in the Netherlands. If your child currently holds a childrens savings account, the account will typically be converted to a standard savings account once your child turns 18.
Parents are very much involved in childrens savings accounts. They are expected to open the account on behalf of their child and also have the option of linking their personal accounts to their child’s. Besides this, there are often account spending limits put in place to help parents monitor cash outflow. Following this set monthly limit, parental approval may be required before further spending can be made.
What are the benefits of opening a childrens savings account?
- Your child could learn basic personal finance skills. With a childrens savings account, your child will learn the basics of personal finance — from practising smart budgeting to understanding how money works.
- It could help your children understand the economy. Holding a savings account is a great way for your child to learn about interests rates, inflation and other factors that influence the economy.
- Managing money teaches essential life skills. Being responsible for a savings account involves more than just financial skills. In the process of managing an account, your child could learn about self-discipline, responsibility and how to stay organised.
How should I choose a savings account for my child?
There are plenty of savings options to choose from, each with different features and fees involved.
To pick the best account for your child, you should compare available accounts using the factors below.
- Interest rates. Accounts with higher interest rates allow children to enjoy the benefits of having good savings habits.
- Ease of making deposits. Most childrens savings accounts are used to deposit and accumulate cash, rather than make frequent withdrawals.
- No or low minimum balances. A childrens savings account should not have a requirement for a minimum account balance as these funds belong exclusively to the child account holder.
The Netherlands a wealth tax of 30% on the assumed profit on wealth, which includes savings, property and investments. However, there is an exemption for the first €30,360 per individual. It is therefore unlikely that you will be taxed for your child’s savings account.
However, there are measures in place to ensure that a fair amount of money is stored in your child’s account. Banks like ABN AMRO, for example, limit account totals and the amount of interest you may earn with a childrens savings accounts.
Pros and cons of childrens savings accounts
- Earn the same interest adults do, for a much lower price. Childrens savings accounts in the Netherlands receive interest rates that are comparable to that off standard savings accounts. Moreover, kids usually get to enjoy this without monthly fees or minimum balance requirements.
- Essential for teaching your child good financial habits. Starting to save from young exposes your child to the world of finance early on. Your child might then be more confident in making informed financial decisions in the future.
- Accessible to children from a young age. Some childrens savings accounts are available to kids as young as a few months old.
- Limits on withdrawals. Such limits are put in place to protect your children from making bad financial decisions, but in doing so restrict their ability to make independent financial decisions.
- Limits on account totals and interest earned. Although these limits are understandably put in place to encourage fair use of childrens savings accounts, it does limit the benefits young kids get to enjoy from their savings.
Compare digital banks that offer childrens savings accounts
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
*To be eligible, open the account by 15 February 2021 and deposit at least €300 by 8 March 2021. New customers only. Use the code VALENTIJN40.
Compare childrens savings accounts in the Netherlands
- ABN AMRO KidsFuture Savings Account. Enjoy an interest rate of 0.15% per annum and unlimited cash withdrawals with ABN AMRO. This account is open for registration to kids up to the age of 11 years old.
- ING Orange Kids Account. This account allows parents to place standard savings orders on behalf of their kids to help build up competitive interest rates.
- Credit Suisse Gift Savings Account. With Credit Suisse, you may gift your child a securities-based savings scheme to boost their long-term savings.
- Revolut Junior. Revolut’s popular digital bank accounts are now available to kids too. This sub-account allows parents to share their main account with their kids, teaching them how to transact and receive money from young.
Compare savings accounts in the Netherlands
- N26. N26 is a popular digital bank contender which offers both free and paid accounts. Besides this, N26 accounts come with N26 Savings — a savings feature that helps you earn up to 1.57% interest per annum.
- bunq. Another digital bank provider, bunq offers savings accounts with interest rates of up to 0.27% per annum.
- ASN Bank. ASN is a socially-responsible Netherlands-based bank with free accounts for those below the age of 18.
- Rabobank. Savings accounts from Raobobank come with contactless payments, internet banking, and a custom mobile banking app.
- ABN-AMRO Bank. ABN-AMRO’s savings accounts come with multi-lingual support and 24/7 customer support for expatriates.
What to watch out for
If you’ve decided to go ahead with a childrens savings account, you should take note of the following before moving forward with registration.
- Use the account only for your child’s savings. Parents must ensure that only their child’s savings are being deposited into the account. The Tax and Customs administration of the Netherlands will apprehend parents who take advantage of the rates on their child’s savings account.
- Withdrawals are limited. Your children may get into the habit of relying on you to provide them with cash since withdrawals from their accounts are limited. As such, try to work around these limitations to teach them how to manage their money independently.
- Terms and conditions. Be sure to read the terms and conditions involved before committing to a single bank provider or type of bank account for your child.
Childrens savings accounts in the Netherlands are useful tools to help your child learn about personal finance from a young age. These accounts are easy to set up, convenient to monitor and are typically converted to a standard savings account once your child turns 18. Whether it’s to teach your children about self-discipline or helping them get a jumpstart on their long-term savings, opening a childrens savings account could be a great choice for your family.
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