Junior securities account

All about the junior custody account (Junior-Depot):

What is it? A securities account in the child's name. Parents manage it as legal guardians; the child is the holder and owner.

Tax advantages (Germany):

• Own saver's allowance: €1,000/year tax-free
• Own basic tax-free allowance: €12,348/year tax-free
• With a non-assessment certificate (NV-Bescheinigung): up to €13,384/year of investment income tax-free!
• That's IN ADDITION to your own allowances

Where to open one?

• ING: junior custody account free of charge, ETF savings plans from €1
• comdirect: JuniorDepot free of charge, large ETF selection
• Consorsbank: junior custody account free of charge, many free savings plans

Watch out – BAföG trap: the money in the junior account belongs to the child. If the child later applies for BAföG (student finance), the account assets are taken into account! Allowance: €15,000. Above that: BAföG is reduced. Planning: keep the account in the parents' name OR keep it below €15,000.

Sample calculation: €100/month from birth, 7% return: by their 18th birthday, the child has approx. €43,000. For a driving licence, studies or a first flat.