You have small children and their future calls out to you. You then want to offer them an amount that they can use in a few years. You can then act now by building up savings for them. To do this, you need to open a booklet for small children from a banking establishment. In this article, we will tell you how to proceed.
Do I have the right to open a bank account for my grandchildren?
Opening a bank account for your little one is a good way to help them better prepare for their future. As a grandparent, you may well open a bank account for your grandchildren.
However, you will need to get permission from the children’s parents or other legal representative such as a guardian. In principle, these people have all the rights to the donation or the sums that you will save for your grandchildren.
Parents will be able to decide whether to keep or close the account until the child turns 16. The legal representatives can thus manage the accounts of minors, they can carry out withdrawal operations, but have no right to the sums of money obtained by the minor by exercising a professional activity or received by donation.
Once the authorizations have been obtained, you can open the account (s) for your grandchildren by sending them moderate amounts.
What type of booklet can I open for my grandchildren?
Before initiating the procedures to open a passbook for your small child, you must have in mind the type of savings to offer him. For minors or children, there are then various types of regulated booklets available to them. Among these devices, we can cite the livret A which only requires a minimal investment at the opening.
The child will be able to use his booklet A from the age of 16 as he wishes. A child can also hold a Youth Booklet from the age of 12. It is a dynamic savings book which can reach 1600 euros in deposit excluding interest.
You can also open a home savings account (CEL) or a home savings plan (PEL) for your descendant. These two investments are subject to the single flat-rate deduction (PFU).
You should know that not all banking products are accessible to minors. This is particularly the case with the Sustainable Development Booklet and the Popular Savings Booklet, intended for adults.
What are the other solutions to give them money?
There are other great ways to give your grandchildren money by opening a savings account for them. You can opt for the PEA Jeunes in particular. The Equity Savings Plan constitutes a financial investment which will allow the child to access a sufficient portfolio to undertake.
There is also the Account Sur Livret (CSL) accessible to children under 12 years old. It requires a minimum balance of 10 euros and the funds are always available. It is the non-state regulated banking institutions that freely set interest rates.
The grandparent can also think about taking out life insurance for his descendant. However, in order for the child to have access to the benefits as an adult, the insurance contract must be taken out before the age of 10. He can use it to cover certain risks or damages.