Savings Account for Child?

Max Million

Registered User
Messages
14
Hi,

We recently had a baby and we want to set up a savings account for her. The purpose of the account will be for her future education. Can anyone recommend a suitable account, please? We are considering the Post Office.

MM.
 
Messages
4,911
Good for the long-term saving:

State Savings: ChildCare Plus and Investment Savings

  • 5 Years 3.37% (A normal deposit account would need to be paying 4.81% to match this rate because this product is not subject to DIRT at 30%.)
  • Maximum: €120,000
  • Early withdraw is possible but is subject to interest penalties.
  • Deposit Protection: Irish government guarantees all State Savings deposits to an unlimited level.
Good for drip feeding a savings account:

Permanent TSB: Safari Saver
3.00% from €1 to €20,000
1.50% on €20,000+ on the entire balance.

  • Instant access
  • Account aimed at children under 12.
  • Interest paid annually on the first working day after 20th November.
  • Deposit Protection: Deposit Guarantee Scheme and the Eligible Liabilities Guarantee.
 

Chuckey

Frequent Poster
Messages
27
Looks like the PTSB Safari saver only pays 2% Gross now.


Are there any better options out there?
We just had our first child and I want to open up an account in the child's own name to pay the child benefit into.

2% minus DIRT will barely keep up with inflation. Is there a better product?
C.
 

NewEdition

Frequent Poster
Messages
273
Are there optiins to put cash into an account for a child in the childs name, paying for example 100 per month until the child is say 18.
Child should not be able access the account until that time.

The options above are short term and are in the parents name I believe
 

Chuckey

Frequent Poster
Messages
27
See above, my post #4 from Feb 2014. I ended up opening a PTSB Safari account in the child's name.
I received the annual statement today and the rate has changed form the 9th Feb 2015 from 2.0% to 1.5%.
This is a pretty significant cut.

Is there a better offering out there from any of the mainstream banks?
C.
 

Newbie!

Frequent Poster
Messages
840
Just something to be wary off. When we enquired about opening a PO account in our child's name, we were told it could not be accessed until he (the beneficiary) turned 18. In the end, we just opened a junior saver sccount in our own bank and as are now preparing to move house, we may need to dip into it so I guess be confident that you won't need access to those funds for the next 18 years.
 
Last edited:

Chuckey

Frequent Poster
Messages
27
Urgh! PTSB have cut the rate again at the start of May.

The PTSB Safari saver now only pays 1.25%. :-(

C.
 
Messages
4,911
EBS have a children's account that pays 2.00%, and also pays out €20.00 as a bonus if you keep the account open for 6 months with a minimum balance of €50.00 in it. It is called the EBS Childrens' Saving Account. Perhaps someone could place information on this account into the best buys section? The link is here:

http://www.ebs.ie/saving-and-investing/childrens-savings-account.html
What I have found is that children's accounts need to be segregated from adult accounts in best buy threads or it gets too confusing. From a past attempt to cover this, I have found that there was not sufficient interest in a children's deposit account best buy thread.
 

Chuckey

Frequent Poster
Messages
27

Chuckey

Frequent Poster
Messages
27
So back in 2016, I went ahead with the advice here and set up an EBS Children’s Savings Account.

Basically, I pay my child's Child Benefit into it every month.
It has been a good product, currently paying 1.75% on €0 - €5000.99, but only 0.01% on €5001+.

However, the balance is now approaching €5k, so I am wondering if there are other options?
What is the best thing to do with this €5k? Drip feed into a regular saver?
There is an EBS Family Saver paying 1.25%, but I would have to find a new account again in 12 month's time.
There is an EBS Teen account - but again the limit is 5k.

Suggestions?

Thanks.
C.
 

random2011

Frequent Poster
Messages
202
We have credit union accounts for our 3 kids but have no idea what rates they get. Would be interested in knowing if moving it to one of the main banks would yield better returns.
 
Messages
4,911
So back in 2016, I went ahead with the advice here and set up an EBS Children’s Savings Account.

Basically, I pay my child's Child Benefit into it every month.
It has been a good product, currently paying 1.75% on €0 - €5000.99, but only 0.01% on €5001+.

However, the balance is now approaching €5k, so I am wondering if there are other options?
What is the best thing to do with this €5k? Drip feed into a regular saver?
There is an EBS Family Saver paying 1.25%, but I would have to find a new account again in 12 month's time.
There is an EBS Teen account - but again the limit is 5k.

Suggestions?
Thanks.
C.
The option with the highest return currently is a KBC Extra Regular Saver @1.25% AER. The maximum balance is 39,999 EUR. The account requires a KBC Extra Current account to be opened too which has no fees provided you deposit at least 2,000 EUR per month.
 
Messages
4,911
We have credit union accounts for our 3 kids but have no idea what rates they get. Would be interested in knowing if moving it to one of the main banks would yield better returns.
You will need to find out your credit union yields in order to compare.
 

llgon

Frequent Poster
Messages
583
What is the best thing to do with this €5k? Drip feed into a regular saver?
Can you not leave it where it is and stop making further lodgements? And open a different account for new lodgements?

It will be a while before the second account accumulates enough funds to earn any reasonable amount of interest so I wouldn't worry too much about the rates for now.

For example lodging €140 monthly into the KBC Extra Regular Saver will earn less than €7 after DIRT in the first year.
 

chases0102

New Member
Messages
3
Hi all, just looking for some info/advice on a similar query


Wish to start saving for child's education (we have a 3 y/o and 5 month old) - return from Post Office/Credit Union/bank is pitiful, so looking at a saving/investment plan from Zurich, who will manage it for an annual fee (1.25%)

Is this wise? Insofar, as I'd be a bit nervous with anything regarded as "investments" when talking about saving for my child's education, but it will lose value if it just stays in a PO account, taking inflation into account.

Just wondering if anyone has done anything similar.

Thanks folk
 

Chuckey

Frequent Poster
Messages
27
Just an update for this thread.

I received a letter from EBS today re. the EBS Children’s Savings Account and an interest rate cut.
The rate is dropping from 1.75% to 1.00% from 24th November 2020 for balances up to €5000.99

For balances over €5001, the interest rate drops to 0.00% from 0.01%

My child's balance went over €5000 recently, but I have been putting off finding a new home for some or all of these funds.

Any suggestions on where to invest?
Should I just drop the balance back down to say €4950 and take the 1% interest for the coming year?
And reinvest the balance and any new funds elsewhere? Where?

C.


So back in 2016, I went ahead with the advice here and set up an EBS Children’s Savings Account.

Basically, I pay my child's Child Benefit into it every month.
It has been a good product, currently paying 1.75% on €0 - €5000.99, but only 0.01% on €5001+.

However, the balance is now approaching €5k, so I am wondering if there are other options?
What is the best thing to do with this €5k? Drip feed into a regular saver?
There is an EBS Family Saver paying 1.25%, but I would have to find a new account again in 12 month's time.
There is an EBS Teen account - but again the limit is 5k.

Suggestions?
Thanks.
C.
 
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