If there is one certainty about starting a family, it is that it is going to be expensive - very expensive.
More than ever before it is not just the cost of keeping the kids dressed, fed and entertained that parents need to think about. The rising cost of a university education, coupled with spiralling house prices, mean many children will still be reliant on the 'bank of mum and dad' long after they turn 18.
But while kids will cost you, they do not have to drain your finances altogether. Whether you are a parent who wants to prepare for the future or a grandparent who wants to help out, there is a range of affordable savings and investment plans to help you build a nest egg for your child or grandchild.
Here are a selection of savings plans for children currently available in Malta:
A Trust for your Child by Ganado Trustees
A Trust for your Child is a natural development and is complimentary to simply saving. It enables you to protect your child’s interests in the future.
This is a modern trend in local family planning as a new generation of parents adopt the concept of building their family estates by starting with a Trust for their Child.
It reinforces the discipline and culture of saving for your child’s future needs, assisting you in this exercise and making it less burdensome going forward. It consolidates and allows for effective management of assets rather than having a segmented and unprofessionally administered portfolio.
Setting up a Trust for your Child is simple – contact Ganado Trustees and we will provide you with the full service starting with a standard document which is easy to understand and apply.
First Coin Account
The First Coin Account is aimed at children who have not reached their 13th birthday. The main objective of the account is to serve as a medium to long term savings proposition.
Features
- The account is a ‘deposit only’ account, held in the name of the child (the account holder)
- No withdrawals are permitted
- Interest is paid annually and credited to the account at the end of each year
- The minimum balance on the account is of €25
- The account can be opened by any one parent or both parents, grandparents, legal guardian or any other close relative (uncle or aunt), hereinafter being referred to as the administrator of the account
- Free ‘life assurance’ on the life of the administrator will be provided
On opening of the account, the child will automatically become a member of the 'First Coin' Club and will therefore be entitled to any benefits given to members of this Club. Account transfers can effected through the Bank's 365 Online internet banking service, and deposits through the Branch/ATM network
New Generations Account
The New Generations Account from Banif Bank allows you to make small regular contributions but there are no set limits on the total amount which you can deposit. In addition, you will get a return on your savings.
This account is specifically aimed to help you save money for your children, however it still offers the flexibility to withdraw the full capital and earn the accumulated interest at certain pre-set intervals.
Key Features
You can open a New Generations Account with an initial balance of €25 and deposit a minimum of €300 annually, which you can choose to spread at regular intervals throughout the year. In return you will benefit from an attractive interest rate. Upon opening of the New Generations Account, you will also be entitled to a FREE GIFT.
After 6 months from account opening, you can apply for a personal loan at reduced rates to finance any requirement for my children such as buying a computer. Grandparents and legal guardians are also eligible to open a New Generation Account and benefit from all the features which this product offers.
More information here.
BOV Young Savers Account
The Young Savers Account from Bank of Valletta is a special account for all children under 15 years of age. If you are a parent, a grandparent or a legal guardian, you can open an account with as little as €2, even as soon as the child is born.
You can deposit into the account whenever you like, so this gives you the opportunity to put aside some extra pocket money for the kids. Why not use the account to deposit cash gifts received on those special occasions, or have your Children’s Allowance paid directly into the Young Savers Account by Direct Credit?
Your children will enjoy the money being saved – withdraw up to €25.00 per week for those little things that they may need from time to time.
When the child is 15 years old, the balance is then transferred to another account to cater for the changing needs of the early teens.
One of the main benefits of this account is undoubtedly the attractive rates of interest that increase as the balance on the account increases. The end result is more funds for your child's future. Nurture your child's financial future .... with the BOV Young Savers Account saving is definitely fun for everyone!
BOV Parents Package
Celebrating important milestones and achievements with your child is so important in helping them develop self-esteem and confidence. Needless to say being financially geared up to measure up to your child's present and future needs requires careful consideration and plenty of planning. To facilitate this task for you and help you plan for your child's present and future needs, Bank of Valletta has designed the BOV Parent's Package offering you a selection of products, services and offers specifically designed for parents with growing kids.
For further details about the products or services available under the BOV Parents Package you may visit any BOV Branch, call our customer care on telephone (+356) 2131 2020 or
download the BOV Parents Package brochure.
MSV Child Savings Plan
The BOV Child Savings Plan has been designed to provide a simple and tax efficient way to save for your children’s future. Investing in the With Profits Fund means any bonuses once declared are guaranteed at maturity.
Karus Account
The HSBC Karus account is a savings account designed with children in mind. It gives higher rates of interest on our Karus account in order to encourage children to save more.
Account features:
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for children up to 12 years of age
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minimum initial deposit €10
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smart red 'safe' money box on opening of account
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attractive interest rates
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account may be opened by either parents or legal guardians, provided the account title includes the name of the child
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when child is 10 years old, the account may be transferred in the child's name. Child may also apply for a Quikcash card with limited use.
HSBC Children's Plan
Children's dependence on their parents goes further than a cuddle or a helping hand with homework. The values they grow up with, the characteristics they adopt and the dreams they share are all inherited from those early days.
Making the right decisions, throughout their growing years, is essential. After all, no one ever said that being a parent is an easy task! With increasing costs, saving for your child’s education, for their future home or car, becomes even more important. The more you save, the less you will need to borrow (if at all) to support your child’s dreams. And the more peace of mind you will enjoy! The money is yours until you decide when to give it to your children.
Children grow so quickly. That is why it is essential, and not just a great idea, to start saving for your children now. If everyday expenses always seem to take over your finances, you need to start a regular savings programme.
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You can start a Children’s Plan from as little as €35 monthly.
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An attractive bonus rate declared annually in advance by HSBC Life Assurance (Malta) Ltd.
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Additional terminal bonus may be paid if the investment is kept for 10 years and over.
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An automatic guaranteed minimum life assurance of €2,330.
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The lump sum payable at the end of the term is tax free under current legislation but this may be subject to change in the future.