# Savings Account for Child?



## Max Million (30 Apr 2012)

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.


----------



## Lightning (1 May 2012)

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%.)
> ...


Good for drip feeding a savings account:



> *[broken link removed]*
> *3.00%* from €1 to €20,000
> *1.50%* on €20,000+ on the entire balance.
> 
> ...


----------



## Max Million (3 May 2012)

CiaranT said:


> Good for the long-term saving:
> 
> Good for drip feeding a savings account:




Thanks Ciaran!


----------



## Chuckey (18 Feb 2014)

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 (19 Feb 2014)

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 (26 Feb 2015)

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! (26 Feb 2015)

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.


----------



## Chuckey (29 May 2015)

Urgh!  PTSB have cut the rate *again* at the start of May.

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

C.


----------



## Subotai (1 Jun 2015)

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:

[broken link removed]


----------



## Lightning (1 Jun 2015)

Subotai said:


> 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:
> 
> [broken link removed]



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 (4 Jun 2015)

Subotai said:


> 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:
> 
> [broken link removed]



Thanks a million Subotai.
C.


----------



## Chuckey (25 Nov 2019)

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





						Child Bank Account – Child Savings – EBS
					

Why doesn’t money grow on trees? An EBS Children’s savings account can answer all your kid’s money questions, in a fun and practical way. Click here to find out more.




					www.ebs.ie
				




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 (25 Nov 2019)

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.


----------



## Lightning (25 Nov 2019)

Chuckey said:


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



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.


----------



## Lightning (25 Nov 2019)

random2011 said:


> 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 (25 Nov 2019)

Chuckey said:


> 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.


----------



## noproblem (25 Nov 2019)

You could always buy some shares at the end of each year and leave them put.


----------



## NewEdition (26 Nov 2019)

Can a share trading accound be set up in a childs name?


----------



## chases0102 (19 Sep 2020)

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 (23 Sep 2020)

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.




Chuckey said:


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


----------



## Drakon (24 Sep 2020)

Sigh!

I’d a similar letter from BoI, a drop from 2.5% to 0.25%. I’ll be moving that but haven’t researched it yet. 
I also have two EBS accounts which are just shy of the €5k, so I may have to move those too.


----------



## AndroidMan (24 Sep 2020)

Not sure about EBS but the BOI account stays at rge lower rate once you exceed the limit, even if you bring it under again.


----------



## Mousehelp (24 Sep 2020)

For BOI, 0.25 rate only applies to over €5000. Below €5000, 2.5% rats still applies..


----------



## Drakon (24 Sep 2020)

Mousehelp said:


> For BOI, 0.25 rate only applies to over €5000. Below €5000, 2.5% rats still applies..


Until 13th November, whereupon 0.25% applies regardless of balance.


----------



## Mousehelp (28 Sep 2020)

Have accounts for children in both EBS and BOI. Don’t  need access gif another 5 years minimum so I think moving them both to saving cert looks like the best option.


----------



## pennywise (9 Oct 2020)

Just came on this thread to find alternative to the kids PTSB accounts and I see everyone got a similar letter. PTSB is dropping the rate to 0.01%, with no limit to the saving. So for every 10k saved, you get the princely sum of ONE euro (before DIRT). Might as well put it under the mattress for all it's worth. 
I already have my own savings with An Post, I'll open an account for the kids, it looks like it's the only viable option left


----------



## irishproduce (9 Oct 2020)

Have started to receive letters from NTMA that our child saver accounts are maturing. Children are still under 10. There are lump sums in them that will either sit idle, we have to write to them to reinvest or move them elsewhere.
Considering we won't be touching the funds for at least another 8 years, what is the wisest thing to do now?
Anyone on here in a similar position?

Thanks


----------



## Pinoy adventure (9 Oct 2020)

irishproduce said:


> Have started to receive letters from NTMA that our child saver accounts are maturing. Children are still under 10. There are lump sums in them that will either sit idle, we have to write to them to reinvest or move them elsewhere.
> Considering we won't be touching the funds for at least another 8 years, what is the wisest thing to do now?
> Anyone on here in a similar position?
> 
> Thanks



An post 5 year bond perhaps


----------



## irishproduce (10 Oct 2020)

Thanks will look at that


----------



## chases0102 (15 Oct 2020)

What about looking at a fund, such as Prisma 4, managed by Zurich?


----------



## Drakon (15 Oct 2020)

chases0102 said:


> What about looking at a fund, such as Prisma 4, managed by Zurich?


Is that cash based?


----------



## Freelance (16 Oct 2020)

irishproduce said:


> Thanks will look at that



Th 5 Year State Savings Cert pays 5% in total, which is 0.98% AER

If your timeline is 8 years, and you are considering the above, you should also consider the 10 Year National Solidary Bond and plan an early encashment. The following are the early encashment rates:






This doubles your money in the last three years (so 10% rather than the 5% you'd get from the Savings Cert) and has a further decent upside should you be in the happy position to leave the money site for the additional year or two. 

The success of this strategy is predicated on interest rates remaining very low for the term you are talking about. It also offers capital security. There are plenty of options that have the potential to exceed these returns, but most of these do not have capital security.

An option worth looking at for those saving for a childs future (as opposed to investing a capital sum) is another State Savings option, The Instalment Savings product. Save a fixed amount monthly for 12 months, then leave it for a further 5 years. It currently pays 5.5% (.98% AER) at the end of the term (which is six years in total). There is a rollover option at the end of the 12 months and the monthly amount may be altered at rollover. Early encashment is poor. This is more of a savings product than an investment option. 

I was faced with this dilemma last year when considering a christening present for a goddaughter. I thought of investing a few thousand but locking it up for such a long time with the potential for pretty poor returns was off-putting. (I had done for another goddaughter's christening over 25 years ago and she got a world tour out of the proceeds the year she was 21, but that was a very different interest/investment rate environment) I thought of splitting it into three or four piles and buying shares in global brands. In the end I gave it to her parents in cash as her contribution to the decoration and fit out of the new house they were just moving into (with the stipulation that it paid for the fit out of her room etc) as a more practical option. No right answer really !


----------



## tallpaul (16 Oct 2020)

urfirst or urmoney accounts with Ulster Bank pay 0.95% according to this here:






						Savings Accounts - Savings | Ulster Bank
					

Ulster Bank Ireland DAC is no longer accepting any new application requests from personal customers.  There are some exceptions to this for existing customers, visit our website for further information.




					digital.ulsterbank.ie
				









						Savings accounts
					

Ulster Bank Ireland DAC is no longer accepting any new application requests from personal customers.  There are some exceptions to this for existing customers, visit our website for further information.




					digital.ulsterbank.ie
				




Of course interest is subject to DIRT unlike State Savings.


----------

