Investing for child

Mother and daughter are using internet banking for investment portfolio overview.

Save for your child by investing

University, travelling, rental apartment – these are just a few extra lines in the family budget when your child reaches the age of majority. Save for your child by investing and give the money a chance to grow.

Comfortable regular investments to funds.
Transactions with Swedbank Robur funds and Baltic stocks are free of charge.
Safekeeping of Robur funds and Baltic stocks is also free of charge.
The earlier you start, the more time you have to save for your child.

Open the accounts

Choose where to invest

Set regular investments

How does investing grow a child’s money?

Child’s age

0 years

18 years

When investing for less than 3 years, use a deposit instead of investing.

A child who has reached the age of majority can invest by themself. Read how to start.

Monthly investment

€

Return of investment

0 %

-15 %

15 %

Average return on stocks 7%

Amount by the child’s 18th birthday
17 280€
Return
0€
Investment period
18years

Calculation and return assumptions

Contract year	Total amount of payments	Estimated amount of savings

The calculator gives an idea of the potential return on an investment over a given period, but the results do not indicate a maximum or minimum return. The calculator calculates in full years, so if your child is 3 years and 6 months old today and you enter 3 years, the number of monthly payments is calculated using the formula 15 years × 12 months. The yield displayed in the calculator is not guaranteed and is not based on actual market performance. The internationally used long-term historical return on an annual basis is 7%, but past returns do not suggest similar returns in the future. The value of an investment can go down as well as up over time, and the fees and risks involved must be taken into account.

There are many different ways to invest on behalf of your child. The main difference comes down to whether the investments are in your name or in your child’s name and whether you want to give the child money or an investment portfolio.

Investments on your own behalf

If the aim is simply to raise money for a child’s education or to buy a first home, the easiest way to do this is to invest in the parent’s name.

Keep reading

Investments on the child’s behalf

As a parent, you may open a securities account for a newborn child and invest in it yourself. From the age of 7, you can give your child the opportunity to view their securities account in the Internet Bank and the right to perform transactions themselves. At the age of 18, control of the securities account passes to the child as the account and investments are on child’s name.

Keep reading

The easiest and most convenient way to invest for your child is to invest in a securities account in your own name.

Investing on your own behalf

The investments are in your name.
You decide when to buy and sell something.
Possibility to set up convenient regular investments, for example, in the Swedbank Robur funds.
When it is time to support your child financially, you can sell the investments.

First decision – which accounts do I need?

To invest, you need a securities account or a securities account with an investment account.

Think about what kind of investor you are.

More active investor

You want to make more investment decisions, which means you plan to sell assets and invest in other securities in the meantime. We recommend investing with an investment account and a securities account. This solution allows you to defer the taxation of the income earned, but you will have to submit an investment account report to the tax authorities once a year when filing your tax return.

Open the necessary accounts

Rather passive investor

You invest in securities of your choice and have no particular plans to sell the investments you have already made until your child reaches the age of majority. A securities account should be enough for you. Under this solution, you will need to declare income for each transaction where you earn income.

Open the necessary accounts

Already using an investment account system?

You can also keep your child’s investment money in the same investment account. However, it is more convenient and easier to have a separate investment account for your child’s investments, where you can keep money for your child’s investments only. If you have more than one investment account, you can declare them together when filing your tax return.

Useful tip! When opening a securities account and an investment account for your child’s investments, name them. For example, by the name of the child. That way, accounts do not get mixed up.

Second decision – where to invest?

Where to invest?

There is nothing complicated in investing. However, it does come with the risk of losing money. Fortunately, diversifying your investments helps to hedge risks. The longer the investment period and the wider the range of securities in the portfolio, the more risk is diversified.

The most common securities are stocks, bonds, and funds. When investing for a child, it can be a good choice to favour broad-based funds as the main part of the portfolio. The funds contain stocks of hundreds of companies and, therefore, the poor performance of one company does not have such a big impact on the performance of the fund as a whole.

Useful tip! When investing, it is important to make sure that the various fees are low. For example, in the case of transactions, the service fee for each transaction should be less than 1% of the total transaction value. When investing with us, you will be trading with Baltic shares and Swedbank Robur funds free of charge. In addition, there is no charge for holding Baltic shares and Robur fund units in the portfolio.

Investing on child's account

Your child can start investing on their own if they are at least 7 years old.

To open a securities account in your child’s name, they must have a current account. Open securities account for your child
If your child does not have a current account yet, you can open it in the Internet bank.
Investments are in the name of the child, not yours.
Only the parent can transfer money to the account to buy securities and the proceeds of the sale must remain in the child’s name.
The child’s portfolio will be visible to the parent in the Internet Bank until the child turns 18.
If you wish, your child can also see their portfolio in the Internet Bank.
You will be making the investment decisions for your child until the age of majority is reached, but from the age of 7 you can give your child permission to perform transactions. This will allow you to develop investment skills together.
Income from investments must be declared on child’s behalf but by parent. Using the investment account system, the payment of income tax can be deferred and profits can be reinvested tax-free. To this end, a report must be submitted annually. When using a securities account only, profit must be declared in case of sale of securities. When submitting both declarations, it is more convenient if the child has an account in the Internet Bank.
When your child reaches the age of majority, control of the portfolio automatically passes to them, and they can decide whether to continue investing or sell the investments.

Free consultation

Come to a consultation and we will find a suitable solution for investing for your child.

Book an appointment for a consultation

How to invest together with your child?

Investing on your own behalf

You can always simply discuss investments with your child.
It is not possible to make portfolio visible in the Internet Bank for your child.
It is also not possible to give your child the permission to perform transactions.

Investing on behalf of your child

Investing on behalf of your child
Until the child reaches the age of majority, the parent has control over the child’s securities account.
Of course, you can also simply discuss investments with your child. However, if you want your child to have an overview of their investments, you can make their portfolio visible in the Internet Bank from the age of 7.
To do this, you will need to sign an Internet and mobile banking agreement for your child. More information about opening accounts for your child is available here.
You can also give your child the right to perform transactions.
Please note that by giving you the right to perform transactions, the child also gains control over the cash account linked to the securities account.

When should investment income be declared and how?

Investing on your own behalf

You will declare investments in your own name. If you have other investments, you can file a declaration together with your own investments.
The way in which you have to file the declaration depends on whether you have opted for the investment account system or whether you only use a securities account.
More information on the declaration can be found here.

Investing on behalf of your child

Investments made on behalf of a child must also be declared.
In the case of a minor child, it is the parent who has the obligation to declare.
We have summarised the information on declaring child investments in this article: Investing in a child and about to declare your income?
In addition to the article, we have also put together a short webinar together with the Estonian Tax and Customs Board, which you can find here.

How can friends and relatives contribute to a child’s investments?

Investing on your own behalf

Friends and relatives can transfer money intended for the child to your account and you can buy securities for the child’s investment portfolio.
When you are using investment account, the money can be transferred directly to the investment account servicing the Securities account with your child’s portfolio.

Investing on behalf of your child

Note that the money intended for purchasing securities can only come from the parent.

Can securities be given as a gift to a child?

Investing on your own behalf

Securities can be transferred to a securities account you keep for your child’s investments by means of a regular securities transfer.
If you are in trouble with the transfer, book an appointment and we will help you.
Please keep in mind that when selling gifted securities, income tax must be paid on the entire selling price of the securities.

Investing on behalf of your child

To give securities as a gift, you must have permission of a court.
Gifting of securities is made by means of a regular securities transfer.
Please keep in mind that when selling gifted securities, income tax must be paid on the entire selling price of the securities.

What happens to investments when parents separate?

Investing on your own behalf

Please note that legally the securities belong to the parent in whose name the securities account is held.
In the case of registered cohabitation or marriage and if the securities are joint property, the portfolio will be divided between the parents in the event of divorce.
In the case of unmarried couples, the child’s securities portfolio held in the name of one of the parents legally belongs to that parent.

Investing on behalf of your child

In the event of divorce, the portfolio also belongs to the child and, as at any other time, neither parent is allowed to withdraw money from it for their own use.

How is the portfolio inherited?

Investing on your own behalf

Inheritance follows the general procedure.
As the securities are in the name of one parent, they are legally the assets of that parent.
With a will, you can determine who gets the assets in a particular securities account.
If no legatee has been designated in the will, a securities portfolio open to one child to accumulate capital is also inherited by all heirs.

Investing on behalf of your child

Inheritance according to the general procedure.

Where to invest?

Brita’s portfolio

In July 2024, the new-born Brita was given a virtual portfolio. Every month, 150 euros are invested in it. View the portfolio and its progress. Read more

Robur funds

Your child can also invest in the Swedbank Robur fund on a regular basis. For example, by transferring 5 euros each week to three funds. A short questionnaire will help you choose the funds.View funds

Earn interest by saving

Here, your child has several options. Whether to save in the Easy Saver with small amounts on an ongoing basis or, if at least 190 euros has been accumulated, open a term deposit.Choose deposit

Consultation

Want to secure your child’s future but not sure which way is right for you?Book a consultation

Not a customer yet?

Investing for child

Save for your child by investing

How does investing grow a child’s money?

Investments on your own behalf

Investments on the child’s behalf

Investing on your own behalf

Investing on child's account

Your child can start investing on their own if they are at least 7 years old.

Free consultation

Where to invest?

Brita’s portfolio

Robur funds

Earn interest by saving

Consultation

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