When and how should you start saving for your child?
You can start saving for your child anytime – as soon as they’re born if you like. When you save for a child, the period is often quite long, maybe even decades. Because of this one good option to consider is investing in funds: over a long period of time, funds will often earn you more than keeping the money in a regular bank account.
You can invest in funds either directly or through unit-linked insurance
- Investing in funds is effortless: a professional portfolio manager looks after the fund without you having to spend time monitoring the markets. If you conclude a monthly savings agreement with us, we will transfer the agreed amount from the selected account to the selected funds for your child each month. When trying to determine a suitable amount, remember that you can get started with just 10 euros a month. You can easily change the monthly contribution later or invest additional lump sums in your child’s fund in Nordea Mobile or Netbank.
- A unit-linked insurance policy may be a good option if you prefer to keep a close eye on fund performance. When your child grows and the world changes, you can switch investments within the policy without needing to report the switches in your child’s tax return. Taxes will only become payable once you withdraw savings for your child’s use. It’s also possible for any loved ones, such as grandparents or godparents, to participate in building up the savings under a unit-linked insurance policy. All policyholders who are under 30 years old will get a 50% discount on the management fee of their unit-linked insurance policy for savings up to 100,000 euros.
Read more about fund investments for children
Book a meeting for investment advice – we’ll help you get started!
At the meeting, you can discuss different alternatives and start saving and investing for your child. The meeting won’t cost or commit you to anything.
Have you already opened an account for your child with us? If you haven’t set up any of our services for your child yet, please do so before the meeting.