The term «children’s deposit» itself is applied to a variety of banking programs, the main task of which is to accumulate material support for the future plans of their children. The special savings system is chosen by the child’s legal representative (parent or guardian) at the bank. The purposes of such savings are different. People choose to save for education, for rent after age 18, or for a separate home they own.
You can open a deposit for a child both urgent and replenished. Sometimes financial institutions allow the process of receiving money in installments, but such offers exist at low interest rates.
1. Banking products on the Russian market
In Russia, there are not many examples focused on the long-term accumulation of funds of their heirs. However, a number of financial institutions include in their list of services and a contribution to the child.
|Bank name and offer||% bid||Minimum deposit (rub.)||Term in days||Additional features|
|Sberbank — «Social»||2.26||one||1095|| |
|Bank Center-Invest — «Grow Big»||3.0||50000||365||Allowed to replenish;|
|Garant-Invest — «Children’s»||5.25||1000000||370||Replenishment provided;|
|VTB — «Investment in the Future»||4.06||30000||366||Payment once a month;|
|Credit Ural Bank — «Family Tradition»||3.88||2500||450|
|Interprogressbank — «Happy Childhood»||4.25||3000||731|| |
|RRRR — «Growing Together»||4.2||10000||365||There are no restrictions on depositing amounts;|
|Rosselkhozbank — «Children’s»||7.4||1000||365|| |
|MFC — «Children with additional contributions — VIP»||6||1000000||365|| |
|SDM-Bank — «Children’s»||3.5||15000||1095|| |
|Investment cooperative bank — «Term deposit for disabled children»||5.65||one||360|| |
As can be seen from the table, the ways in which assets are allocated differ depending on the institution. In terms of time periods, these are long-term projects, since the period is at least one year. Interest remuneration is accrued according to a scheme in which the amount of finance plays a significant role. It is also noted that a low indicator affects the freedom of action that the investor performs without violating the terms of the transaction.
A married couple opens an account with little cash, but will increase it with the right use of savings mechanisms.
In addition, the group of offers includes the service of capitalized savings, which simplifies the summation of benefits (a kind of passive income is obtained).
In some banking organizations, for example, in the IFC, a child deposit is only for VIP clients. Premium clientele has the right to make contributions to the account, having previously put on it from a million rubles.
Also, IK-bank approved an investment initiative for disabled children. Therefore, there are no similar deposits for minors with a standard health category. Therefore, in order to avoid inconsistencies, it would be more correct for citizens to use one of the sites where the functionality of each financial product is disassembled point by point and contains comprehensive information. With the help of such tools, even without special education, it will be possible to analyze and evaluate, extracting the optimal solution from the abundance of options.
2. How such investment systems work
When compared with conventional deposit programs, deposits for children have their own nuances that distinguish them from other lines of savings products. The salient features are as follows:
- Registration is carried out by legal representatives;
- A person becomes the full owner of the account upon reaching the age of majority;
- From the age of fourteen, with the permission of the trustee or father and mother, you can spend savings.
It is important to bear in mind that in the event of a divorce of the spouses, the contribution for the child is not subject to the division of property, which serves as a guarantee of the safety of finances.
The target contribution for children has specific features. Proceeding from the perspective, the appropriate conditions are also selected. For example, there are urgent options where the rates are high, and you can capitalize. This will not only save the existing capital, but also increase it. The most profitable structure is where there is an opportunity to report, capitalize interest and a relatively high interest rate position.
Long-term deposits are good for education and the acquisition of residential property. As the child grows, the amount of savings increases significantly. Almost all children’s projects are provided with automatic renewal, which saves Russians from the obligation to renew the contract and come to the department for this.
Place funds in Fin. the institution is prudent, since in a situation of instability in the country, insurance provides for the return of previously issued amounts of money from passbooks, sometimes in an increased amount. A well-known example of such compensation is the return of children’s deposits opened before 1991. Sberbank reimburses the amount of those deposits in a double amount, and for account holders older than 1945, compensation is three times the amount of the existing deposit.
3. How to open a deposit in the name of the child
In documentary terms, the deposit program for a child does not differ from the standard one, except that documents are required not only for a representative, but also for a minor (birth certificate or passport).
Difficulties arise when the agreement is terminated. To complete the contractual obligations, the following algorithms are performed:
- If a citizen is under the age of fourteen, the official consent of the guardianship and guardianship authorities is sometimes required to close obligations. Such difficulties can be if this obligation is spelled out in the completed documentation, so when applying, it is better to carefully read all the provisions and what is written in small print.
- If a person over 14 years old, but not of legal age, wants to terminate the contract, he will do this without the permission of adults. This practice is again due to carelessness when signing and unwillingness to study all aspects in detail. Most often, with deposits of this kind, there is a permissive system for managing money.
You can open deposits in precious metals. Moreover, the details of the procedure are not much different from making a simple deposit. From the documents you will only need an adult passport and certifying documentation for your child.
Experts recommend choosing MHI as a funded instrument when it is assumed that the funds will lie for five years or more. In addition, the price of gold, palladium and platinum is constantly changing, which will affect the benefit that the child will derive from the invested assets. With a successful scenario in the precious metals market, there is a real chance to get good help.
5. Benefits of deposits for minors
There is no doubt that deposits of this type are endowed with many positive characteristics.
- You can open such a deposit even for a newborn, there are no age restrictions, only the upper bar is 18 years old.
- Everything is insured at the state level and, under unforeseen circumstances, are compensated from the state budget.
- The service of capitalization and replenishment is available, which allows you to increase your wealth through profit on compound interest.
- A young investor is accustomed to owning financial instruments, and with the right approach, he forms a clear understanding of the structure of the savings functionality.
- From the age of 14, the account holder has the legal right to receive accruals and use details for other enrollments (stipend, pocket money).
- The registration procedure is easy and economical in time (in some banks it is done online with a transfer by card).
- Financial protection is reliable even during divorce proceedings.
- It is impossible for a third party to use a child’s deposit in any way, which protects finances.
Thus, saving money for the future of your child is a very profitable undertaking. True, it is worth making a decision if you do not plan to spend funds for other purposes.
6. Disadvantages of child deposits
- Access to capital from the age of 18 will negatively affect the savings function. Often, adults do not manage their own state rationally. Therefore, it is necessary to conduct conversations with children and in every possible way promote their literacy and responsibility.
- Finances cannot be withdrawn for your own needs or without the knowledge of the guardianship department. Before applying, you should once again make sure that you want to place funds specifically for the child.
- Interest rates are low. In addition, at the beginning of the term, one value is set, and during prolongations it changes and not always for the better. However, one should not forget about the replenishment of assets, which also brings profit.
- State insurance covers up to 1.4 million rubles.
- Deposits are often limited to cashing out in installments or early termination of the contract. However, all this seems to be insignificant if it is not intended to be used ahead of time.
- Sometimes investing in the future life of your ward is possible only for a limited circle of clients. So, for people belonging to the premium class of service, there are special conditions and access to individual projects.
As an alternative to a deposit, you can simply buy long-term OFZ bonds.
7. What is the result
Modern bank deposits for a child are reliable and profitable if you know how to properly dispose of them. In addition, there are options for the preservation of capital, both in precious metals and in foreign currencies. Such methods are considered by those people who are afraid of inflation. Also, for such citizens, deposits for 1-2 years with prolongation will be convenient.
For the younger generation, this form of financing will become a kind of «safety cushion». The accumulated money can be spent on studying, starting a business, buying real estate, a car, etc.
The key point that experts focus on is the willingness to put money in and forget about their existence until the moment they come of age. Then the ward has the right to fully dispose of them. So asset placement certainly makes sense.