The best godparent gift: How godparent money turns into a fortune

If you're searching for «godparent gift ideas,» you've come to the wrong place – and at the same time, exactly the right place. Instead of finger paint chaos, here's a gift that really grows: the cleverly placed god coin.

All godparents and grandparents are familiar with this dilemma: what gift will last for their godchild? Toys gather dust, clothes become too small, and nobody needs yet another soft toy. And cash? It often ends up in a piggy bank, where it slowly loses value thanks to low interest rates.

When I become a godparent, I sometimes give Zurich Zoo shares as a gift – the recipients receive free admission for life. But there are even better ways to build long-term wealth: a godparent's gift that becomes an asset.

Creating a nest egg: Why a savings account is not a good idea

Most of the money ends up in a Savings account. Sounds reasonable, but it's a bad place for your godchild's gift. The reason: interest rates on savings accounts are currently well below the Inflation. The money is kept «safe» – but loses purchasing power every year.

With an investment horizon of 18 years (birth to adulthood) or longer, the calculation looks very different:

What CHF 1,000 in pocket money can buy:

CHF 1,000 at birth becomes over CHF 44,000 by retirement age. That is the power of compound interest – and the reason why a children's deposit account is almost always a better choice than a savings account.

A godchild gift with a future: the best options

But what exactly should you invest in? The following are particularly suitable for a small amount of money:

Broadly diversified ETFs or funds – a solid foundation for long-term wealth creation
Gold – the classic, «solid» and crisis-proof
Sustainable funds – for donors who care about ESG

Individual shares (too risky for a child's portfolio) and traditional savings accounts (too low a return) are not suitable.

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Gold: A tangible gift from your godparent

Gold is particularly popular with godparents and grandparents. It has something «tangible» about it – a value that you could theoretically touch. It transcends generations, is timeless and crisis-proof.

The Swisscanto Gold ETF (ZGLD) Here is an elegant solution:

100% physically stored – real gold, no derivatives
Stored in Switzerland – in the vault of the Zurich Cantonal Bank
No issuer risk – Special fund under Swiss law
One of Europe's largest gold ETFs – over CHF 13 billion in volume
Tradable at low cost or free of charge – from various Swiss providers at preferential rates, free of charge for example from Yuh

The advantage over a gold coin from your godfather: the ETF share will not get lost in the nursery or when moving house. The gold is safely stored – and could theoretically even be physically delivered (delivery fee max. 0.2%). In practical terms, this makes little sense with a godfather coin, but it shows that real gold is deposited here, not paper gold.

My assessment: As an addition of 5–15% to the Göttibatzen portfolio, gold is a solid choice. It does not generate dividends or interest, but complements equity ETFs as an anchor of stability.

Sustainable godparent gift: ESG equity fund

Those who value sustainability will find Swisscanto ESG equity funds, for example:

South West Central Scotland – Swisscanto ESGen SDG Index Equity Switzerland ETF (focus on Switzerland)
SWCSW – Swisscanto ESGen SDG Index Equity World UCITS ETF (global)

Both are also available from various Swiss providers at low cost or free of charge, for example from Neon or Yuh.

Good to know: ESG equity funds often cost slightly more than traditional ETFs. In return, they invest in companies that meet sustainability criteria – an important factor for many donors.

Opening a Göttibatzen deposit account: Here's how it works

A Göttibatzen deposit can operate in three ways:

In your name: You retain full control and decide when to hand over the money – ideal for teaching financial literacy beforehand.
In the name of the child: The child automatically gains access at 18 – caution is advised with impulsive young people
In the name of the parents: You transfer the money, your parents invest it. Advantage: simple. Disadvantage: you have to trust that the money really ends up in the deposit account – and isn't spent on a new pram.

There are also differences in terms of taxation. The good news is that gifts to godchildren are tax-free in many cantons up to generous allowances – in Zurich, for example, up to CHF 15,000, and in Schwyz even unlimited. You can find further details and a comprehensive comparison of providers in my Children's deposit account comparison Switzerland.

The most valuable gift from a godparent: financial education

When my daughter was born, I invested CHF 15,000 in a children's savings account. My goal? For her to be a millionaire by the time she retires – without ever having to pay in another penny. The maths works out: with an annual return of 7%, CHF 15,000 will grow to around CHF 1.2 million over 65 years.

But the real gift is not the money. It is the understanding behind it.

My plan: to review the course of the investment together over the years. Explain why fluctuations are normal. Show how compound interest works. And then – when she really understands – consciously hand over the securities account. Not as a shock on her 18th birthday, but as a tool for her financial future.

The most valuable gift a godparent can give is not the money itself, but an understanding of how it can grow.

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Conclusion: The best godparent gift is one that grows

A gift voucher doesn't have to gather dust in a piggy bank. Invested wisely, a small gift can become real start-up capital – and with a little financial education on top, it can become the most valuable gift of all.

Invest in God instead of a savings account – the difference is enormous over the years
Gold ETFs as classics – physically stored, secure, «tangible»
ESG equity funds for sustainability-conscious investors – for donors with values
Provide financial education – the actual gift

Invest wisely for your godchild. Today's small contribution can be tomorrow's start-up capital.

→ Children's deposit account comparison Switzerland

→ ETF Savings Plan Switzerland

→ Gold ETF Switzerland

Note: This article was produced in collaboration with Swisscanto.

Frequently asked questions about the godparent gift

As a godparent, can I open a securities account in my name?

Yes, that often makes more sense. You decide when to hand over the keys and can provide financial education beforehand. More on this in the Child custody account comparison.

What is the minimum amount required to open a Göttibatzen deposit account?

Starting from as little as CHF 1. Almost more important than the amount is the time – the earlier you start, the more compound interest can work for you.

Gold or shares – what is a better gift for a godchild?

Both have their merits. Equity ETFs as a basis for growth, gold as a stable addition (5–15%). The combination makes for a robust portfolio.

Do I have to pay tax on the Göttibatzen deposit?

Yes, but don't panic: as long as the account is in your name, you declare assets and income in your tax return. With typical pocket money amounts, the wealth tax is negligible and the income is quickly entered. If the account is in the child's name, the parents are responsible for the declaration.

Do I have to pay gift tax on the Göttibatzen?

Not usually. The allowances are generous: in the canton of Zurich, for example, gifts to godchildren up to CHF 15,000 are tax-free. In Schwyz, there is no gift tax at all. So for typical godparent gifts, this is not an issue.

About the author

Eric is the founder of Schwiizerfranke.com and certified IAF wealth advisor. Since 2019, he has been helping Swiss citizens to organise their finances comprehensibly, independently and efficiently.

📌 Note: This article is for information purposes only and does not constitute personalised investment advice.

One Response

Maria says:

5. January 2026 at 17:22

The children's room thing hit us right on the mark!
No more Vreneli coins. In future, there will be ETFs for all children.

Reply

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The best godparent gift: How godparent money turns into a fortune

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