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Investing for kids

  • 20-06-2008 11:32am
    #1
    Galaxie390
    Registered Users, Registered Users 2 Posts: 39 ✭


    Hi Folks,

    I have a 3 year old, for whom we've saved approx €2k. At the moment I have this in a term deposit with Rabodirect, which pays 5.25% over the 6 month term. Prior to this it was just in one of Rabobank's standard online accounts.

    Would anybody know what the story is with DIRT on her savings? I assume she is still liable for tax?

    I'm looking at essentially 2 savings goals:
    1 - She may want to go to college
    2 - An amount of her own savings for the first car, deposit, etc

    As I have a few investments with rabodirect, I was thinking of doing the same for her. I figure that I have approx 15 years before I may need the money for college, etc.

    Can I set up an investment in her name, but I manage it or do I have to set up a trust? What happens if I set up a fund in my name and transfer it over to her at a later date?

    What is everyone else doing for their kids?

    Thank you in advance for any info.

    Rich


Comments

  • #2
    RaboDirect
    Closed Accounts Posts: 40 ✭RaboDirect


    Galaxie,
    You can open an account for a minor (a child under 18), http://www.rabodirect.ie/savings-ireland/childrens-savings/default.aspx in RaboDirect. The parent or guardian controls the Account(s) and the Digipass.
    You can create more than one savings or term deposit account.

    All savings accounts are liable for DIRT which is deducted at source (unless you're over 65 when you can apply for a DIRT exemption http://www.rabodirect.ie/help/dirt-tax/default.aspx). If you already have a RaboDirect account in your name all you need to do is submit an online application for the Minor account and include a photocopy of the child's birth cert with the application. There's no need to include ID and proof of address documentation again.

    You can also open an investment account for a child. You can invest lump sums or create a Rabo Regular Investment plan. The minimum investment is €100 per transaction.

    Hope the info above is of help to you.
    RaboDirect

    Galaxie390 wrote: »
    Hi Folks,

    I have a 3 year old, for whom we've saved approx €2k. At the moment I have this in a term deposit with Rabodirect, which pays 5.25% over the 6 month term. Prior to this it was just in one of Rabobank's standard online accounts.

    Would anybody know what the story is with DIRT on her savings? I assume she is still liable for tax?

    I'm looking at essentially 2 savings goals:
    1 - She may want to go to college
    2 - An amount of her own savings for the first car, deposit, etc

    As I have a few investments with rabodirect, I was thinking of doing the same for her. I figure that I have approx 15 years before I may need the money for college, etc.

    Can I set up an investment in her name, but I manage it or do I have to set up a trust? What happens if I set up a fund in my name and transfer it over to her at a later date?

    What is everyone else doing for their kids?

    Thank you in advance for any info.

    Rich


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