Skip to content A children's account or children's custody account has two enormous advantages. Firstly, compound interest works extremely well over a long period of time, resulting in a great return. Secondly, you can show your children later on what returns investing can bring them in the long term and thus pass on financial education to them.
Short personal note: When my daughter was born, I invested CHF 15,000 in a child custody account. My goal? She'll be a millionaire by the time she retires - I'll explain exactly how that works below.
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.
| Finpension Invest | Findependent | Inyova | Viac | YUH | Kaspar& | True Wealth | UBS | ZKB | Postfinance | Raiffeisen | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |  |  |  |  |  |  |  |  |  |  | |
| 💡 Type | Children's depot | Children's depot | Children's depot | Children's depot | Youth bank account | Children's depot | Children's depot | Children's depot | Children's depot | Children's account | Children's account |
| 🚦 Fees | Favourable | Favourable | Moderart | Favourable | Favourable | Favourable | Favourable | Moderate | Expensive | Favourable | Moderate |
| ✔️ Special features | Very affordable, flexible and fully digital | Transparent fees, simple online access | Sustainable investment options, completely digital | Very inexpensive, simple, flexible, focus on Switzerland possible. | Can be opened independently from the age of 14 (without parental signature), with TWINT, free Mastercard debit card, no overdraft risk | 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 1 | CHF 500 | CHF 2'000 | CHF 1 | CHF 1 | CHF 1 | CHF 1,000 | CHF 1 | CHF 50 | CHF 20 | CHF 1 |
| 🔒 Account holder | Parents | Parents | Parents | Parents | Adolescent (14-17 years) | Parents | Child | Child | Child | Parents | Child |
| More info | Receive bonus! | Receive bonus! | Receive bonus! | Receive bonus! | Receive bonus! | Receive bonus! | Receive bonus! | UBS test report! | To the provider | View test report | To the provider |
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 bank account specially set up for minors to save money and learn how to handle finances. Due to low interest rates, more and more banks are also offering children's accounts, which 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), a children's custody account Switzerland-wide is generally the smarter choice than 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 my case, I have decided in favour of a child custody account with a 100% share quota when my daughter was born. This is more volatile, but over an Ainvestment horizon of 65+ years the higher return is the decisive argument. The calculation is impressive: CHF 15,000 seed capital can be converted into CHF 1.2 million with an annual return of 7%. without ever having to pay in another franc.
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 is entered on the parents' tax return throughout Switzerland. 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 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 secure a 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 will no longer be able to dispose of the assets at a later date. In such cases, the tax obligation lies with the parents.
Banks have different guidelines when parents want to access their child's account in financial emergencies. 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. |
I made a conscious decision to keep my daughter's custody account in my name. That way, I can decide the best time for the transfer myself instead of having to hand everything over automatically on her 18th birthday - because who knows, she might be in a phase where the money would be used up quickly. My plan is to hand over the assets to her gradually and provide her with financial education so that she understands the long-term value of the portfolio. Of course, she should be allowed to decide for herself what to do with her money - but I want to make sure that this decision is made on the basis of real financial knowledge.
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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 a huge difference and is therefore generally the smarter choice.
Also consider before opening tax aspects and the Access to the moneywhich is clearly regulated by law in Switzerland. Because even if Children in Switzerland cost a lottheir money must not simply be accessed.
As a financial expert, I apply the principles I recommend to my readers to my own family. With a one-off investment of CHF 15'000 into a Broadly diversified, low-cost equity portfolio When my daughter was born, I laid the foundations for her financial independence.
The mathematics of Compound interest effect is impressive: with an average annual return of 7%, it will continue to do so until retirement age. Millionaire without ever having to pay in another franc. This type of Long-term thinking and early action is exactly what I recommend to you.
Invest intelligently for your child (or other children) and choose a children's account or custody account that suits you in the long term! Further helpful resources:
Which provider do you choose? Feel free to share your experiences in the comments.
A youth account throughout Switzerland, like a youth custody account, must always fit in with your personal plans. Should it be a pure account solution or are securities more suitable? You should also pay attention to a number of tax aspects, which is why you will find all the important details in this article.
The costs of the Post Office children's account are moderate, but it offers a pure savings solution.
Securities are usually more suitable for long-term accounts for children and young people.
In surveys comparing children's custody accounts throughout Switzerland, Findependent, Finpension and True Wealth (in alphabetical order) were repeatedly mentioned in the Swiss franc community.
However, there are other children's custody accounts and you should look at your needs to see which children's or youth custody account suits you best.
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.
I would like to open an account or custody account for the birth of my niece.
However, she will live in Japan, "pay" taxes and is a Japanese citizen.
What options do I have?
It's best to discuss this with her parents. At best, a solution here + later gifting is an option. Or you could handle everything via her parents / Japan ...?
Dear Eric,
Thank you for your helpful contributions. Which option have you decided on? I don't have children yet, but I already have a plan for a monthly investment of CHF 50-100 😀 Is there a reason why you haven't listed Interactive Brokers? It is also possible to create additional sub-accounts there and transfer them later. This would also be attractive in terms of costs and the money would be with a real broker. The other option I would also look at would be a savings plan account with Saxo, where the custody account can also be transferred to a third party.
Am I missing something with my two options?
VG
Andreas
Dear Andreas,
In my personal case (it may be different for you), Finpension was the best fit.
You can find IB and Saxo here but these are not specialised child custody accounts. I can't tell you how well this fits with the transfer. What is clear to me: I don't want to give my daughter my entire custody account, just "her" part, and not just when I die - so that's not a solution for me.
Dear greetings 🙂
Hi Eric, many thanks for this post, which comes at just the right time because we are looking for a child custody account for our 8-week-old daughter. 🙂 I find it interesting that the custody account can only be in the name of one parent if you choose the option of not opening the account in the child's name. We have enquired with various providers (Viac, Finpension etc.). We are not married and I think this is a bit outdated in terms of the one-sided tax burden for one partner and legally in the event of a separation. Do you know the reasons for this and do you have any tips? Many thanks and best regards Alessandra
Hello Alessandra,
Congratulations on the birth of your daughter! 🍼
I don't know the exact reasons - I suspect regulatory / bureaucratic effort.
However, wealth taxes are generally so low (unless you directly endow your daughter with millions) that this is negligible in my eyes.
TipIf you don't want to open the custody account in your child's name (e.g. because you want to remain flexible), then it would make sense to draw up a written agreement between the two of you - e.g. who pays in how much, what should apply in the event of separation, etc.
What do you think of Avadis as a children's custody account provider?
The Avadis children's account strategies look good and the costs are fair. However, the process for opening an account etc. is not digital and therefore involves more effort.
Hello Eric
Firstly, thank you for your valuable contributions.
I am looking for a bank where I can open a gift account for my godchild. Do you have any tips?
Hello Daniel,
With pleasure! I would recommend a child custody account (not an account) - see article. You can open it in your name and then decide when to "hand it over", or have your parents open it and then give you the IBAN for the deposits.
Or did your question go in a different direction?
Hello Eric
Our 19 year old daughter (pupil/student) would like to start investing. Do you have a recommendation on which broker would be suitable? It would be 2-3 orders a year. I first thought of Swissquote, but the fees are very high in comparison. Would Yuh be something? Or do you have any ideas for young people >18?
Thank you and best regards
Nicolas
Hello Nicolas
It's wonderful that you are actively supporting her on this journey. Should she actively invest with a Broker learn? Or is a robo advisor a solution for them?
Have a look at Saxo Bank on. Custody account fees = 0, very low transaction fees and around 130 ETFs that can even be bought in the savings plan without transaction fees. I was with Swissquote until recently and have just switched to Saxo.
Is finpension (Invest)'s child custody account also included or has it been omitted here for a specific reason?
Finpension Invest didn't exist when this post first went live. However, the Finpension children's account has now been added 🙂 Thanks for the tip!