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Old 13.01.2014, 13:55
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Children's bank account - recommendation

Hi,

Can anyone recommend which bank to use if setting up an account for a young child (less than one year old) and/or perhaps recommend another financial option.

The account will be used for making regular monthly deposits from myself and also somewhere to put any monetary gifts he receives. Ultimately providing him with a bit of a help when he reaches 18 or older.

So far I've looked at UBS, Credit Suisse and Post Finance.

Findings:

Post Finance
Free account management
Preferential interest rate: 0.750% (CHF) or 1.000% (EUR) up to CHF 25,000 / EUR 15,000

Credit Suisse
Monthly account administration: Free of charge
Interest rate p.a.: 1.25%

UBS
Monthly account administration: Free of charge
Interest rate p.a.: Not sure
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Old 13.01.2014, 14:02
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Re: Children's bank account - recommendation

Take a look also at Cantonal banks, Migros & Coop bank, and of course the Raiffeisen Bank.

You will of course be declaring this money on your tax return.
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Old 13.01.2014, 15:58
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Re: Children's bank account - recommendation

Are you sure Credit Suisse is free? We had our children's accounts there but got informed that as of 2014 they charge 60 CHF/yr. So we closed the accounts and went to Postfinance.

I would reccommend having the accounts in a bank you are a client of so that you can easily add the accounts to your ebanking etc.

Migros was good too but we are not clients, hence our choice of Postfinance.

Ciao
K
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Old 13.01.2014, 16:14
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Re: Children's bank account - recommendation

Another option you may wish to look in to is a savings plan at an insurer. PAX has a very good one called PAX First Step and it is structured as follows:


  • you save a monthly amount same as at a bank (you can always put in a lump sum on top of that such as from gifts etc.)
  • whatever you put in is invested in highly diversified security-oriented funds through various private banks that the company works together with
  • there is a guaranteed interest rate of 1.5% for any contracts closed before 01.04.2014 (after that 1.25%) + Chance of surplus. PAX has been performing solidly at around 3% for their surplus the last decade or 2.
  • if anything were to happen to you (or whoever is paying the monthly premium) the insurer would take over the monthly payments so that the savings goal for your child is definitely reached
  • optionally you can add in capital payouts / monthly payouts to yourself or the child if anything were to happen to the child (invalidity / death) (i.e. basically life insurance)
  • Keep in mind that these additional options will cost something (albeit not all too much, last I checked for an invalidity payout of CHF 2,000 a month (lifelong) for the child cost CHF 144 a year to insure)
  • You can also save at an insurer but not add in any of the insurance part, thus it becomes a regular savings account (like at a bank) but is invested through private banks, and has a higher guaranteed interest rate; which is also quite nice.
Other insurer offers similar products but I've made the best experiences with this one. The website for PAX's version of this is:

http://www.pax.ch/privatkunden/pup-i...icherungen.htm

Sadly the website is only available in German but if you have any more questions or would like personalized advice just PM me and I will be happy to answer them.

As for bank solutions the interest rate p.a. at UBS is currently 1% up to CHF 20,000 and only 0.10% for sums above that. Other banks seem to be in the same region.

I would recommend looking into fund solutions for a part of what you save on the children's savings plan (20%, 30%, 40%, 50% etc.) to participate in slightly more exciting interest rates than the bare coverage of inflation. Credit Suisse seems to have the highest interest rate and they also have great funds that you can tie a portion of the investments to; so I would say go with Credit Suisse if the insurance portion is not for you.

As for my recommendation on whether to go with a bank solution or insurance solution: mix! Variety is the spice of life and its no different with saving plans. It depends on the size of the monthly payments though.
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Old 13.01.2014, 16:21
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Re: Children's bank account - recommendation

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Are you sure Credit Suisse is free? We had our children's accounts there but got informed that as of 2014 they charge 60 CHF/yr. So we closed the accounts and went to Postfinance.

I would reccommend having the accounts in a bank you are a client of so that you can easily add the accounts to your ebanking etc.

Migros was good too but we are not clients, hence our choice of Postfinance.

Ciao
K
We have an account for our son at credit Suisse and it is still free. Maybe it depends how much is in the account.
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Old 13.01.2014, 16:33
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Re: Children's bank account - recommendation

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Are you sure Credit Suisse is free? We had our children's accounts there but got informed that as of 2014 they charge 60 CHF/yr. So we closed the accounts and went to Postfinance.

I would reccommend having the accounts in a bank you are a client of so that you can easily add the accounts to your ebanking etc.

Migros was good too but we are not clients, hence our choice of Postfinance.

Ciao
K
Interesting you say that. I'm sure when I looked last year I found that both UBS & Credit Suisse would charge however when I looked today, I found that there are no charges.
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Old 13.01.2014, 16:39
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Re: Children's bank account - recommendation

To solve the Credit Suisse dispute:

https://www.credit-suisse.com/ch/pri...dsparkonto.jsp

Quote from their site:
How You Benefit
  • Free account management
  • Attractive interest rate
  • Simple and convenient asset growth
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Old 13.01.2014, 16:53
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Re: Children's bank account - recommendation

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I would reccommend having the accounts in a bank you are a client of so that you can easily add the accounts to your ebanking etc.
We did this and if use use ebanking, this makes sense. We also had to sign power of attorney forms.
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Old 13.01.2014, 18:20
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Re: Children's bank account - recommendation

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We did this and if use use ebanking, this makes sense. We also had to sign power of attorney forms.
Can you explain what you mean 'had' to sign power of attorney forms? Sounds very odd indeed to me giving a power of attorney should never be forced.
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Old 13.01.2014, 18:43
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Re: Children's bank account - recommendation

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Can you explain what you mean 'had' to sign power of attorney forms? Sounds very odd indeed to me giving a power of attorney should never be forced.
The children were young, it was a requirement by the bank.
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Old 13.01.2014, 18:54
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Re: Children's bank account - recommendation

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The children were young, it was a requirement by the bank.
I had a bank account aged 9, a cheque book at 11 & a cheque guarantee card at 13 in the UK, however I never gave a POA to anyone. The POA allows you to access your children's money without their authority, kind of sucks, I would have found another bank if I was a child of yours
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Old 13.01.2014, 19:38
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Re: Children's bank account - recommendation

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We have an account for our son at credit Suisse and it is still free. Maybe it depends how much is in the account.
Very weird. We have small children but the amounts are not small so do not think it is that.

Strange stuff

K
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Old 13.01.2014, 19:53
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Re: Children's bank account - recommendation

Have you consider the E-bank, PIG?
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Old 15.01.2014, 10:05
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Re: Children's bank account - recommendation

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Have you consider the E-bank, PIG?
Can you please explain what this is?
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Old 15.01.2014, 13:50
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Re: Children's bank account - recommendation

I'm personally biased towards Postfinance (https://www.postfinance.ch/en/priv/prod/acc/child.html) but you can compare interest rates at www.comparis.ch

However, if you are looking at an investment horizon of around 17 years you might want to opt for a funds plan (since the interest rates in Switzerland are not exactly spectacular...).
https://www.postfinance.ch/en/priv/p...iew/offer.html

Of course you might still want to get a separate youth account with which your child learns to "save", "pay" etc. but in terms of providing a nice starting cushion for your child when it turns 18 the funds could be the better option in the long term (unless of course we head into 17 year long bear market...).
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Old 15.01.2014, 14:50
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Re: Children's bank account - recommendation

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You will of course be declaring this money on your tax return.
Why would you want to do that?
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Old 15.01.2014, 15:00
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Re: Children's bank account - recommendation

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I had a bank account aged 9, a cheque book at 11 & a cheque guarantee card at 13 in the UK, however I never gave a POA to anyone. The POA allows you to access your children's money without their authority, kind of sucks, I would have found another bank if I was a child of yours
what did you have before your first birthday?

I remember the old days, I had 2 credit cards at 16 or 17 and I'd often pay one off with the other - expensive, I know
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Old 15.01.2014, 18:58
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Re: Children's bank account - recommendation

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Can you please explain what this is?


PIG E-Bank, piggy bank...could.not.resist.
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Old 02.07.2015, 16:01
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Re: Children's bank account - recommendation

Hi all financial wizards

The last post was 18 months ago, and we are now also looking for 2 simple bank accounts for our kids. Mainly to balance weekly money, dinner money, hand bills and so on.
Looking for simple account, with interest payable if possible, maestro card, no credit card, online banking.

Any thoughts on the current account offerings ? ZKB, CS, UBS, Post ???

Thanks.
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