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Skip to content A A child account or child custody account has two enormous advantages. Firstly, compound interest works extremely strongly due to the long period of time, which means that a large Return on investment comes about. Furthermore, you can show your children later on what returns investing can bring them in the long term and thus teach them about the benefits of investing. Pass on financial education.
In this article you will find a large child account comparison throughout Switzerland and you will also find out what you need to bear in mind for tax purposes!
Let's start with a table for an initial overview of children's accounts and custody accounts.
| Findependent | Inyova | Kaspar& | True Wealth | UBS | ZKB | Postfinance | Raiffeisen | |
|---|---|---|---|---|---|---|---|---|
 |  |  |  |  |  |  |  | |
| 💡 Type | Children's depot | Children's depot | Children's depot | Children's depot | Children's depot | Children's depot | Children's account | Children's account |
| 🚦 Fees | Favourable | Moderart | Favourable | Favourable | Moderate | Expensive | Favourable | Moderate |
| ✔️ Special features | Transparent fees, simple online access | Sustainable investment options, completely digital | Simple digital interface, sustainable focus | Automated portfolio management, low costs | Education package, special apps | Wide range of educational programmes, online banking | Free account management, educational materials | Attractive savings interest rates, events for young customers |
| 💰Minimum investment | CHF 500 | CHF 2'000 | CHF 1 | CHF 1,000 | CHF 1 | CHF 50 | CHF 20 | CHF 1 |
| 🔒 Account holder | Parents | Parents | Parents | Child | Child | Child | Parents | Child |
| More info | Bonus received! | Bonus received! | Bonus received! | Bonus received! |
Sorting in the children's custody account comparison and children's account comparison: Deposits (alphabetical order), then Savings accounts (alphabetical order). You can find more details on the individual offers below.
A Children's account is a special programme for minors Bank accountto save money and learn how to handle finances. Due to low interest rates, more and more banks are also offering Child deposits that provide an early introduction to the world of Shares and other forms of investment.
The accounts or custody accounts can be in the name of the parents or the child; this differs depending on the provider and should definitely be included in the selection.
Due to the long investment horizon (e.g. 18 years) Child deposits usually the smarter choicethan a pure children's savings account with interest. This is because a children's custody account with shares can achieve a good 6% - 8% return per year in the long term and ride out fluctuations on the stock market.
In this way, young adults can later be shown the fluctuations that the invested money has "experienced" and yet it has increased significantly, in order to teach them important financial education.
A pure children's savings account, on the other hand, only earns very moderate interest, which is usually lower than inflation. A savings account does not generate any significant assets in the long term.
Godparents (godparents) or grandparents often set up children's accounts to help their godchildren or grandchildren financially. It is common for children of a certain age to have access to the money saved.
For tax purposes, the child custody account or child account entered on the parents' tax return. If taxes are due on the income or assets from the child account, the parents must also pay them.
However, there are special regulations that must be taken into account. The decisive factor is who has power of disposal over the account. Ideally, this should be clarified and agreed with the bank when the account is set up in order to prevent any subsequent ambiguities.
Example: If an aunt opens a savings account that is registered in her name, but it is agreed that the money saved will later go to her nephew, the tax obligation remains with the aunt until the age of 18, as she is the account holder and has full power of disposal.
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To avoid possible disputes, grandparents or godparents (godparents) can make a Secure the right of disposal when opening a child or youth account. If they do not do this and the account is opened in the child's name, they can no longer dispose of the assets later. In such cases, the tax obligation lies with the parents.
Banks have different guidelines when parents in financial difficulties access their children's account. Child want to access. Clear agreements help to avoid disputes later on.
Incidentally, a distinction is made in Switzerland between free and tied child assets:
| Category | Tied children's assets | Free children's assets |
|---|---|---|
| Definition of | Assets through gifts or inheritances, managed by the parents. | Self-earned money (e.g. apprentice's wages), managed by the child. |
| Administration | Parents manage it and may use the income for maintenance, education and training. (Full withdrawal only in exceptional cases). | Managed by the child. |
| Access at the age of majority | Power of disposal is transferred to the child when he or she comes of age. | Child already has full power of disposal. |
Advantages if the account is held in the child's name:
Disadvantages if the account is held in the child's name:
Advantages if the account is held in the parents' name:
Disadvantages if the account is held in the parents' name:
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"Intelligent people learn from the mistakes of others".
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The conclusion of the big comparison of children's accounts and custody accounts in Switzerland is clear: The right choice of a children's account or custody account can make a significant difference to your child's financial future! A Child custody account instead of a child account makes an enormous difference and is therefore usually the smarter choice.
Before opening an account, also consider tax aspects and access to the money, which is clearly regulated by law in Switzerland. Because even if Children in Switzerland cost a lottheir money must not simply be accessed.
Invest wisely for your child (or other children) and choose a children's account or custody account that suits you in the long term!
Which provider do you choose? Feel free to share your experiences in the comments.