Saving or investing for a child you love
What are the benefits?
Saving and investing are simple ways to build up a tidy capital sum for a child later in life. Both give you the freedom to put money away at your own pace. That could be in the form of a lump-sum deposit, gifts on special occasions or monthly deposits. You can access your money at any time, which is handy should circumstances change in the future. Not only that, you can easily set things up yourself using KBC Brussels Mobile or KBC Brussels Touch.
How to go about saving for a child
A savings account is a relatively safe way to set aside money for later and has the advantage that friends and family can deposit money into it, too. The main features of what is essentially a digital piggy bank are listed below:
- You save on tax, as individuals are exempt from withholding tax (currently 15%) on the first 980 euros of interest earned each year (2023 figure).
- You choose how much you deposit and when, and you also decide when your beneficiary receives the amount saved.
- You can make things even easier for yourself by setting up a savings standing order, which enables you to save an amount of your choice at your own pace.
You can choose from different types of savings account that enable you to put money away for an unborn baby or a child, either in your own name or the child's name.
How to go about investing for a child
Investing is a useful way to get more from your money in the long run. However, your return can fluctuate during the life of your investment and isn’t guaranteed either. But when you take a long-term view, you stand more chance of earning a better return than a savings account will offer. The main features of an investment-linked insurance product are listed below:
- You designate a beneficiary, i.e. a child (or other loved one) who’ll ultimately receive the money.
- You choose the end date, which you can change at any time. Should you die prematurely, the amount set aside will go straight to your designated beneficiary. What’s more, you can withdraw all or part of the amount before the end date, should you need to.
- You decide how much you invest. You can start an investment plan from as little as 10 euros a month, or you can opt for a lump-sum investment.
The investment-linked insurance product, KBC-Life Solutions4, is a readily accessible way to build up a capital sum for another person, such as a child who’s close to you.