Savings accounts for young children

I still haven't gotten around to opening up a savings account for my daughter, now 18 months, but have been meaning to do so. Her little sister will be arriving soon and I am thinking of opening up an account for each of them and putting in any cash baby gifts etc. (retroactively for Baby #1!)

I have googled a bit but haven't found much -- does anyone know of any good offers for savings accounts for children (Sparkonten)? I'd like something with no annual fee where we can put in small sums periodically (i.e. birthday and Xmas gifts etc.), hopefully with at least some minimal interest!

Also, are there any tax implications to opening up a bank account for a minor?

(Moderator--if you think this belongs in Family Life rather than Finance please move!)

Remind me to tell you about a mutual fund account for kids. My son has one. Now I have to get back to the Bday party at the neighbors.

We went to our local Sparkasse and got a good deal.We joined a ' Sparkonto Extra'.We pay in € 25,56 every month and the girsl get normal interest plus a goodie.The goodei ranges year to year.Eldest is 12 now and will be getting 2.5% intrest and then a goodie of 35% on the amount paid in the year.On a pay in of €300 she will get over € 160 this year

Eurovol, could you give us some more info about this mutual fund. Thanks.


Mik, is this Sparkasse account is the one you have? I presume the €160 you mention is made up of the 35% of €300 plus the 2.5% (although it looks like they only pay 1.21%) on the total in the account.