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Degiro closing Minor accounts .....what are the options

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  • 10-02-2022 11:01am
    #1
    a clanger
    Registered Users Posts: 353 ✭✭


    Just received an email from Degiro stating that they will close all minor joint accounts by May. Given that putting funds on deposit is not an option has anyone any ideas for a similar broker that would facilitate minor accounts.

    FYI


    We are contacting you regarding your DEGIRO account with the username XXXXXXX. Unfortunately, we can no longer offer Joint accounts which includes a minor account holder. This is because flatexDEGIRO Bank AG is not able to provide minors a bank account, which is required to hold a DEGIRO account.

    With this letter we are officially expressing our decision to terminate the business relationship in accordance with the Customer Agreement. Your DEGIRO account will therefore be closed on 15 May 2022.



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    #2
    leo738
    Registered Users Posts: 146 ✭✭leo738


    I'm in the same boat...

    Perhaps Interactive Brokers Family Account might be a possible option.

    Haven't tried to open an account yet though.



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    #3
    a clanger
    Registered Users Posts: 353 ✭✭a clanger


    Yes saw that but it really does not seem as simple / straightforward as the DEGIRO setup was.



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    #4
    Caspero
    Registered Users Posts: 220 ✭✭Caspero


    Received the same message regarding my son's account so also looking. As an added complication, the bank that I had used to fund the account was Rabo. Haven't been able to find a bank that would open an account for someone his age since. I am trying the credit union for him but not sure that will work due to restrictions on where money can be transferred etc.

    Regarding brokerage accounts for a minor, it's not perfect but Davy will let you open an account in the parent's name with "a/c child's name" tagged on the end to signify that it is an account for the child. Not sure how that would be viewed when it comes to actual ownership / gain allocation when the young one gets old enough to want to sell the securities in the account.

    I'm also interested to hear of any other brokerage account options out there for minors.



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    #5
    a clanger
    Registered Users Posts: 353 ✭✭a clanger


    I have minor accounts with AIB. They are savings accounts but I can transfer in and out via internet banking. Thats what I was using to fund the Degiro account. Satisfied their needs as it was in the minors names.



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    #6
    SpiderSpider
    Registered Users Posts: 16 ✭SpiderSpider


    https://www.boards.ie/discussion/comment/118642100#Comment_118642100

    Do you mean this is a work around? and they won't close your child's account? I was just about to set up a degiro account for my child and being honest I wouldn't have a clue where else to put it money for them



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    #7
    a clanger
    Registered Users Posts: 353 ✭✭a clanger


    https://www.boards.ie/discussion/comment/118647368#Comment_118647368

    No the AIB minor accounts were just to transfer money in/out of the degiro account. If you had a degiro account it automatically came with a 'flatex' bank account where unspent funds /dividends etc were held until you invested them. It seems that Degiro no longer will have an option for minor accounts after May. In fact I seem to remember that there had been a waiting list to open minor accounts so they probably haven't opened new ones for a while.



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    #8
    SpiderSpider
    Registered Users Posts: 16 ✭SpiderSpider


    https://www.boards.ie/discussion/comment/118651443#Comment_118651443

    thanks for getting back to me on that. What are our options now for setting up a low risk investment fund for approx 20years?



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    #9
    a clanger
    Registered Users Posts: 353 ✭✭a clanger


    https://www.boards.ie/discussion/comment/118663006#Comment_118663006

    Indeed what are the options. Probably some managed fund with a 1% admin fee !. The type that you used to be able to buy without fees on degiro! I'm sure there are plenty of financial advisors waiting to give advice. I'll probably shop and see what comes up around but if it was a 20 year project than I'd definitely be more medium risk as you have time on your hands. DYOR ! ....



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    #10
    leo738
    Registered Users Posts: 146 ✭✭leo738


    https://www.boards.ie/discussion/comment/118626788#Comment_118626788

    I followed up on this, a non-runner.

    So is Davy's the only broker that allows opening trading accounts for minors? Any other accessible to Irish residents?

    I've shares in DeGiro for my kid that I need to transfer across.



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    #11
    Caspero
    Registered Users Posts: 220 ✭✭Caspero


    As a follow-up to this in case anyone is still looking for options with the 15th May deadline for closure of Degiro minor accounts approaching, I inquired with Davy. They now allow for accounts for a trust with the minor as beneficiary.

    I'm not a tax expert but I think if you go this route then you as trustee would have to submit tax returns related to the trust. I see some details on what the lay of the land for trust tax returns was in 2014 here: http://www.ohanlontax.ie/downloads/TaxationofTrusts.pdf

    To find out details you can contact the Davy account opening team through their website.


    If anyone else has found other options for consideration please do update us!



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    #12
    TalleyRand83
    Registered Users Posts: 230 ✭✭TalleyRand83


    https://www.boards.ie/discussion/comment/118818255#Comment_118818255

    Do the likes of Davy give you access to a platform of their own like DeGiro or is it all behind the curtain so to speak?



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    #13
    Caspero
    Registered Users Posts: 220 ✭✭Caspero


    https://www.boards.ie/discussion/comment/118819356#Comment_118819356

    Does it matter if there's no other alternatives for minor accounts? Beggars can't be choosers...

    On that topic, if anyone has found an alternative it would be great to hear!



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