19th April 2021

What is the best way to save for your children?

When you become a parent, you worry about the well-being of your children. This is also true for their finances! By putting away a sum you are giving them an easier and more sure-footed start in life. There are different options to prepare their future and help them finance their studies or their first home. Savings account, insurance product or housing savings scheme: here’s just a few ideas to help you make the right choice according to your child’s age.

Savings accounts and new-born gift

Thanks to a savings account you can easily start building up capital for your child. You can choose the Spuerkeess blocked savings account, which is frozen until your child’s 18th birthday. It offers good remuneration and there is no account closing balance fee.

You can also opt for the classic Tweenz savings account, which also offers a favourable remuneration. However, here the money is not frozen up to the child’s 18th birthday. In fact, until the child’s 12th birthday, the legal representative is the only person to have access to the account. Then from age 12 to 15, the child can access their money with the legal representative’s consent and finally, once they reached 15, the child is free to decide how to use their savings.

The Tweenz savings account

The savings account for children between the age of 0 and 12.

Once your child turns 12, the Tweenz savings account is converted into an Axxess savings account, also offering preferential remuneration for the young holder.

Thanks to the Axxess card, your child benefits from a number of advantages, notably reductions in certain restaurants and other establishments, on membership cards or language courses! Whatever your choice, children aged between 6 and 12, are automatically part of the Tweenz-Club, which offers advantageous conditions with many business partners as well as fun activities adapted to your child’s age. They will love it!

Once your child turns 12, the Tweenz savings account is converted into an Axxess savings account, also offering preferential remuneration.

Now, what about the babies?

Soft, gentle and sweet, they light up our lives! So, to congratulate you on the birth of your bundle of joy, Spuerkeess offers a new-born gift of EUR 50, deposited directly into a blocked savings account, on condition that you have taken out the account before your child’s 1st birthday.

Alternatives for saving for your child

S-Invest: Investing for the long term

Looking for an alternative to a savings account? Here it is, thanks to S-Invest! We are not telling you anything new when we say that inflation is constantly rising and that the interest rates on savings accounts are close to zero.

Therefore, if you invest the amount you had set aside for savings, or just a part of it, it is likely to increase over time. Whereas the same amount of money in a traditional savings account is likely to decrease in value over time, precisely because of inflation and low interest rates.

Before taking the plunge, you can simulate how much you may earn in a few years' time, in relation to the investment you plan to make in your S-Invest savings plan.

When you open an S-Invest savings plan, Spuerkeess will give you EUR 50 for your first investment!

Life insurance: Secure the future of your children!

Life insurance policies offer you the opportunity to form a financial package to enable your child to pursue studies or to achieve other dreams. Combining a provident fund and security, certain insurance products such as lalux-Study Cover, can be taken out without medical formalities until your child is 12 and leaves you free to decide on the amount to invest. Once the child becomes an adult, the amount saved will be allocated to him on a quarterly basis. The payment of allowances is already guaranteed after 5 years of premiums.

Furthermore, the saved capital benefits from a guaranteed rate of interest, fixed by the Luxembourg Insurance Commission (Commissariat aux Assurances) and a participation in the profits of the LALUX insurance company. This amount is fixed year by year and granted from the 2nd year of the contract! As with any insurance product, the premiums can be deducted from taxable income, if the contract is taken out for a minimum term of 10 years.

For taking out the lalux-Study Cover insurance product, you will receive a gift of EUR 50, which will be deposited in the child's account.

Housing savings: Saving for your child's future property project

You might not like the idea of it, but one day your children will move into their own home! A BHW housing savings scheme account is a good way of guaranteeing them a start-up capital that will make their life easier when they apply for a housing loan. You can easily take out a contract in your child’s name today and determine the amount that you want to transfer. Once the allocation date has been reached, the savings are free to be invested in property.

Whatever you decide, Spuerkeess will support you and your children in all your saving plans. Feel free to arrange a meeting with a Customer Advisor to discuss in more detail the different possibilities according to your children’s ages!

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