Three different cases may arise.
In all three cases, this is possible. You can open a savings account to help your child in the future!
"}},{"componentType":"paragraph","title":"1. You are a parent or legal representative (guardian) and you want to open a savings account for an under-18 year old child.","richBody":{"value":"As a parent, you have the possibility of opening a savings account in your own name or in the name of your child.
The difference lies in who owns the money. If the money belongs to the minor, the account must be opened in his or her name, whereas if the money belongs to you, you have the option of opening the account in your name or in the minor's name.
At ING, as at most banks in Belgium, the account is opened in the name of the child who holds it, but you, as the parent or guardian, remain responsible for it until your child turns 18.
When you open an account in your child’s name, this money is presumed to belong to your child and you are required to manage it as a prudent and reasonable person. On the other hand, if you open the savings account in your own name, the money belongs to you.
This difference is significant were the parent to die or have their property seized. If the account is opened in your child's name, the money is presumed to belong to him or her, and there are no inheritance procedures to follow in the event of the parents' death. However, if the savings account is in your name, this money belongs to you (unless proven otherwise) and the inheritance rules must be applied. A fair distribution of your money between your various assigns is provided for by law (in the absence of a will). This money will be transferred through a notary (the assigns will also have to pay inheritance tax). If you want this money to go solely to the child for whom you opened the savings account (within the limit of the portion available, if applicable), it must be specified in your will, bearing in mind that there is a risk that your assigns may appeal this decision. You also have the option of making a gift to the child (or other person) of your choice to leave them the amount of your choice (bearing in mind that your assigns may appeal this decision).
The advantages and disadvantages of a savings account in your name or in the name of your child should therefore be weighted up according to your particular circumstances.
"}},{"componentType":"paragraph","title":"2. You are a grandparent and you want to open a savings account for your under-18 year old grandchild.","richBody":{"value":"In Belgium, grandparents cannot open a savings account in the name of their grandchildren but don’t worry, we have a solution for everything! The third party stipulation. Don’t go, wait a minute! You’ll see, it’s very simple.
The third party stipulation allows you to open a savings account in your name and to designate a beneficiary who will become the sole holder on a certain date.
In this case, as a grandparent, you will be the original holder and the child will be the beneficiary.
On the date you choose, the beneficiary, i.e. the child, will become the sole holder of the savings account and you the grandparent will no longer be able to consult or manage the account. This mechanism transfers ownership of the savings account and the money in the account from you to that child. This child can therefore become the owner of this savings account, for example on his or her 18th or 25th birthday. What a great gift!
This option can be changed, the chosen date can be changed during the life of the product, the holder (i.e. you the grandparent) can decide to change or delete the beneficiary and remain the sole holder. Please note that once the beneficiary, your grandchild (or his or her parents), has accepted the stipulation, or once the account has been officially transferred to him or her on the specified date, it will no longer be possible for the original holder, i.e. you as the grandparent, to go and take back control of the account.
"}},{"componentType":"paragraph","title":"3. You are not related to a child and you want to open a savings account for them.","richBody":{"value":"In Belgium, if you do not have a family relationship with a child, you cannot open a savings account in the name of that child but don’t worry, we have a solution for everything. The third party stipulation! Don’t go, wait a minute! You’ll see, it’s very simple.
The third party stipulation allows you to open a savings account in your name and to designate a beneficiary who will become the sole holder on a certain date.
Let's imagine you're the child’s godparent. You, as godparent, will be the initial holder and the child will be the beneficiary.
On the date you choose, the beneficiary, i.e. the child, will become the sole holder of the savings account and you the godparent will no longer be able to consult or manage the account. This mechanism transfers ownership of the savings account and the money in the account from you to that child. This child can therefore receive ownership of this savings account, for example on their 18th or 25th birthday. What a great gift!
This option can be changed, the chosen date can be changed during the life of the product, the holder (i.e. you the grandparent) can decide to change or delete the beneficiary and remain the sole holder. Please note that once the beneficiary, your grandchild (or his or her parents), has accepted the stipulation, or once the account has been officially transferred to him or her on the specified date, it will no longer be possible for the original holder, i.e. you as the grandparent, to go and take back control of the account.
It is important to bear in mind that inheritance tax in this case can be very high. You should therefore check the impact of inheritance tax on your assets.
"}},{"componentType":"sectionTitle","title":"When can I open a savings account for a minor child?"},{"componentType":"paragraph","richBody":{"value":"As a parent or legal representative, you can open a savings account in your own name for your child even before they are born. From the 6th month of pregnancy, you will receive the number of their savings account... A useful piece of information you can include with the birth cards you send out!
If you are a grandparent, godparent, uncle or friend of the family and you want to open a savings account for a child, you will need to be a little more patient than the parents. You can only open the savings account for the child after the child is born (see options above).
"}},{"componentType":"sectionTitle","title":"Which savings account should I choose for a minor child?"},{"componentType":"paragraph","richBody":{"value":"You have a choice of three categories of savings account:
The legal category refers to the conditions that apply to this account.
Category A has no conditions. You can pay money into the account with no limit on the amount and in any way you want (direct individual transfers or a regular standing order). There is no age limit or condition on the basic interest rate or loyalty bonus.
Amount conditions apply to category B accounts. A minimum or maximum amount may be stipulated.
Category C applies age conditions. This is a savings account reserved for a specific category (for example, a youth account).
Savings accounts offer a two-part return (click here for more details), which depends on the account category. Conditional Category B and C accounts often offer a better return than unconditional Category A accounts.
Interest rates may vary and the bank is required to inform you in advance.
In the event of a change in rate, the basic interest rate applies in proportion to the time passed. The loyalty bonus rate in effect at the time of payment or at the start of a new period remains unchanged for a period of 12 months.
Good to know! For 2024, interest up to €1,020 is exempt from withholding tax. Withholding tax of 15% is applied to interest over the above sum.
We would be very happy if you trust us with your child’s savings account. Discover and compare the savings accounts we offer, as well as the interest rates. You'll find all the essential information for savers.
"}},{"componentType":"sectionTitle","title":"Do you want to invest for an under-18 year old child?"},{"componentType":"paragraph","richBody":{"value":"Check out our investment options
Two types of life insurance are available in Belgium: branch 21 life insurance, which is considered to be a savings product with a guaranteed return and branch 23 life insurance which can be considered to be a strategy for a long-term investment in various assets of your choice: equities, bonds or real estate funds.
Branch 23 offers higher returns than a savings account but nevertheless carries some risk because it is subject to some volatility. Investing in an investment fund through a branch 23 life insurance product enables you to enjoy the benefits of life insurance combined with the potential of an investment fund. The value may therefore rise as well as fall, meaning that the risk is higher than with a capital-guaranteed life insurance policy. Over the longer term, investing in an investment type life insurance may provide a higher return, however this is not guaranteed. The underlying fund does not offer capital protection nor a capital guarantee.
Branch 21 is also a form of life insurance, with a lower return than branch 23 but with higher capital protection (with or without a capital guarantee).
Click here to learn more about our life insurance offers.
"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","richBody":{"value":"
* In the event of bankruptcy or the risk of bankruptcy of the financial institution, the saver bears the risk of not recovering his or her savings or these savings may be reduced/converted into capital shares (Bail-in) for the amount owed to the saver by the financial institution over and above 100,000 euros (per person), this being the amount which is protected under the deposit protection mechanism. You can obtain more information on this protection system on the website Deposit Protection Fund and Protection Fund | (belgium.be).
"}}]}}}