Newborn Savings Options

JimmyCorkhill

Registered User
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117
I have come across some older threads but it seems the advice can change over time.

6 month old, first born. Currently children’s allowance is going into our joint account which we use for mortgage payments, bills etc.
I was planning to redirect it to overpay the mortgage each year but wife doesn’t get paid maternity leave from workplace, so for now we need the money till she goes back to work.

However, grandparents want to gift the newborn c. €6,000, except we have no account set up for them yet.
Thereafter I suspect the baby will receive between €300 - €600 (conservative estimate) annually in gifts from grandparents & godparents. Of course they may decide to give more but not sure.
I don’t think we (parents will make regular contributions to an account for them) as priority will be to pay down mortgage/move house in the next few years. We will likely just deal with any expenses for child when they crop up and hopefully buy them a car etc. when the time comes.

Should we just put the initial €6,000 and any annual top ups into a kids deposit account with hopefully no fees or are we better off putting it into some sort of investment that potentially may give a better return than bank interest?

And on a related note, are we being naive not making any regular weekly/monthly contributions into an account for newborn?

All thoughts, opinions and experiences welcomed.

Thanks.
 
This key post, last updated October 2026, is recent enough to still be valid as far as I can see. The advice it offers isn't just for college funds but for anyone considering "children's" savings/investments.
 
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There have been a few different threads on this type of subject over time so maybe run the AAM search option or try Google also using:
site: askaboutmoney etc.

This post may be helpful with regard to Revenue and Small Gift Exemption advice. Best to avoid anything with CGT implications in the future.
 
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