Which savings forms should you choose if you want to provide for your children? This question is difficult to answer for parents, not least in a zero-interest environment.
“If you want to remain flexible and quickly access your savings, the classic savings book is still an option,” says Waltraud Bouzek, money expert at consumer protection at the Upper Austrian Chamber of Labor. In order to save fees for investing and dissolving a savings book (four to six euros), everything can be placed in a savings book. The money is freely available up to an amount of EUR 100,000 and is secured by deposit insurance.
The search for special savings book offers from the banks for children is worthwhile. These would usually offer higher interest rates than for adults. You can definitely use these marketing campaigns.
The AK warns of a cost trap in building loan contracts. For young people, these offer better interest rates than savings accounts and, with annual payments of a maximum of 1,200 euros, would bring 18 euros in building society support. With lower savings amounts, the premium and savings could be nibbled on again by the account management fee.
When a child is born, precious metals would be bought and given away. In a long-term comparison, this has proven to be a valuable investment, says Bouzek. However, gold and silver do not pay interest. The profit must be achieved through the increase in value.
Higher returns but also higher risk include securities and mutual fund savings plans. If the investment is for minor children, investments must be made in trustworthy securities in order to avoid a total loss. The state determines what is safe.
Bouzek advises clearly defining the term and savings goal before you start saving. Premature cancellations in the event of an urgent need for money could result in significant losses.
Source: Nachrichten
