Children's savings in 2023

Why save for achild in 2024

Whether it’s for his future studies, his first apartment or the car for his first job, giving him a start-up capital, thanks to child savings, is helping him get off to a good start in life and is surely one of the best gifts you can give him.

After all, we know how important education is in life, and how valuable a language stay can be for learning a language. Not to mention his first car or simply the moment of independence with his first apartment.

But you still need to know which child savings plan to choose? Let’s find out together and give your child the best.

How do children’s savings work ?

Children’s bank savings are the best-known and most traditional solution. In other words, parents open a bank account in their child’s name, into which they freely transfer whatever amounts they wish. Once your child turns 18, he or she has full control of the account and can use it as he or she sees fit.

Low interest rates and high fees on savings accounts, however, have made these solutions far less attractive than they once were. One advantage is that the money is “liquid” when you need it, and can be withdrawn at any time. But is this really the purpose of these savings?

How do children’s insurance savings work?

The second solution is to save for a child’s 3rd pillar insurance. As it turns out, this solution is increasingly favored for its tax benefits, protection and returns.

You usually take out a 3rd pillar savings plan for your child. This makes you the owner of the contract and your child the beneficiary. This solution offers many advantages in terms of returns, protection and taxation. Let’s find out more about the benefits of children’s savings.

Who keeps control of their child’s savings?

Unlike children’s savings in a bank, where once they reach the age of majority they can withdraw the money they’ve saved over the years and dispose of it freely, children’s savings in an insurance policy enable you to keep control of the savings and choose when to pay them to your child.

Even if the savings are intended for him or her, you are the owner of the contract and the savings, and the insurance company will pay the money saved to you. You can then decide whether or not it’s the right time to pay him the money in full or in part.

Saving for your child’s start in life is an important goal for every parent. However, you also need to ask yourself what would happen if you were no longer there to do it. 

While in banking, savings stop in the event of the parent’s death, and the accumulated savings and savings objective are not realized, this is not the case in insurance. In fact, one of the advantages of a child’s insurance savings is that, in the event of the parents’ death, the savings will be continued by the insurance company until the policy matures. In some cases, the final sum will be paid to the child immediately, and a judge will then ensure that the child’s savings are protected until he or she reaches the age of majority. 

Unfortunately, it’s difficult to continue saving if you become disabled and have to claim Ai. Insurance also offers protection against disability. If you were unable to work due to illness or accident, the insurance would take over and pay the premiums for you until the due date, allowing you to continue saving for your child. 

Tax advantages

In some cantons, it is even possible to make tax savings and deduct

Guaranteed Capital

If the responsible parent suffers a misfortune, the capital is paid to him or her regardless of what happens.

Savings & Protection

Possibility of including a sickness and accident disability pension to protect your child

A real benefit

There are several categories of children's accounts offering significant returns

An important choice

Which child savings plan should I choose?

The bank savings account

Children's savings insurance

Tax-deductible savings

Children’s insurance savings are part of the 3rd pillar 3B pension plan. So you can save on taxes in Geneva and Fribourg by deducting the premiums you pay for your child’s savings insurance.

The amounts deductible from your taxable income for 2019 are as follows:
In the canton of Geneva

  • 2,200 per year for a single person
  • 3,300 per year for a married couple
  • 900 plus deduction per child on your tax return

In the canton of Fribourg

  • 750 per year for a single person
  • 1,500 per year for a married couple

Save for your child's future and save on taxes

Deduct payments made to a child’s savings plan now and save every year on your Geneva and Fribourg taxes.

An important choice

The advantages of child insurance

The solution to protect your child's future

With child insurance savings, you’ll benefit from tax advantages, total account control and protection for your child’s future.