Kids savings accounts - good return alternatives

marcusw

I've savings accounts for young kids with a few hundred euro in it which I plan to keep adding to as the kids grow up. By the time they get their hands on it, inflation will obviously have taken a toll.

I'm looking for good alternatives. They must take into account:

I want to take into account:

• Tax, etc. (putting investments in my name or the kids name for example)
• Be able to add to each of the kids accounts as money comes in at birthdays, etc.
• Easy to manage (if I buy shares, for example, for all kids in my name and reinvest the dividends it will be tricky working out the actual values in 20 years from now. Separate share accounts or sub-accounts would solve this).

A few options are:

• State saving bonds (10 year is currently 22%).
• Some sort of share platform where I can set up separate accounts or sub-accounts. Invest in something safe and good for long term (I've invested in ETFs in Australia, but brief research indicates ETFs aren't straightforward in Ireland).

Any other good options that will safely grow over time and minimise the impact of inflation?

Thank you.

aidanki

looking for similar, did you find anything

Shedite27

I had this same issue a few years back.

Obivously cash accounts are available but as you said will be next to no return, same with State Savings. You really want to be in equities for that length of time.

You can set an account up in your name, but then whatever amount it grows to would be eligible for inheritance taxes when you give it to your kids. Could be a hefty fee especially if you're also passing a house to them in inheritence.

So you want an account in their name, that you can contribute to. Brokerage accounts (Degiro, T212 etc) aren't willing currently to open trading accounts for a minor (they used to, but stopped in 2021).

Companies like Aviva/Zurich do Child Savers, obviously they charge a fee, as do the government (1% levy), but all told it's the best return I found. It's a regular savers account, so mightn't be what you're looking for, you have to put in say €100 each month rather than lump sum on birthdays/christmas, but can then invest in ETF's and the cash is theirs whenever you tell them about it, rather than being an inheritance tax issue

Shedite27

https://www.boards.ie/discussion/comment/122505095#Comment_122505095

Punish is a very wrong word here. We mightn't get to keep as much of our profits as we'd like to keep, but ther returns are still far ahead of government bonds