Many prudent parents are thinking about opening a deposit in the name of their own child, who has not yet turned eighteen years old. Such operations have gained popularity since the existence of the USSR. Every person born in the Soviet Union remembers savings books that were issued by caring mothers and fathers, grandparents.
As a rule, accounts were opened in the name of the child. This option of protecting the child from any financial problems in the future is still popular. The contribution allows you to provide a child who has not yet reached adulthood with a successful start in life. In this article you can learn how to open a bank account in the name of a minor.
Deposit for a child under 18 years of age
Sberbank has provided various amenities that make using your deposit and regularly replenishing it very simple. You can open an account by presenting your child’s birth certificate and your own passport at any branch of a financial institution.
Once the agreement for the children's deposit is signed, you will be able to top up the account at any time. According to Sberbank policy, not only parents, but also other people can deposit funds - for example, on a child’s birthday, it will be possible not to give money in an envelope, but to make a contribution using the deposit number. Transfers are available both through bank branches and using Internet banking or a special mobile application.
After turning 14 years old, the child will receive limited access to his own account - he will be able to withdraw interest accrued over the past years on the principal amount of the deposit. Their size depends on the period for which the contract was concluded and the selected currency. After the eighteenth birthday, the child’s deposit becomes the full disposal of the person in whose name it was opened.
Children's deposits - a bright future for a child or parents' money thrown away?
Many loving parents and grandparents have not even heard of it: such investments are not very popular in Russia and are unlikely to be in demand in the near future.
There are several reasons:
- Low rates. For example, Sberbank pays only 3.7–3.8% per annum, provided that the deposit is opened for three years from 1,000 rubles. If you make an investment for 10 years or more, due to inflation there will be nothing left of it.
- The population has lost confidence in banks and is not ready to make long-term investments. They are not even attracted to investment insurance.
- Due to financial instability, banks are not ready to offer consumers long-term products.
The advantage of children's savings deposits is the possibility of early withdrawal and flexibility. When choosing deposits, it is better to give preference to a product for a period of 1 year with automatic renewal. This will allow you to use the money when needed and save interest.
Sberbank plastic cards for children over 14
An alternative to traditional deposits is the Sberbank “Replenish” card, on which you can also save money. Even the child himself can open this type of product at a credit institution by contacting one of the branches or branches.
The initial deposit amount in the account must be at least 1 thousand rubles. There is no fixed date when payments should be received on the card. Parents and other relatives of the child can also top up the account. Interest, depending on various factors, will be additional income for the baby.
Another similar offer from Sberbank, available to children, is called “Youth Card 14+”. This plastic card has additional advantages, for example, it allows you to return part of your spending with bonuses when making purchases.
Conditions for investors
Banks issue deposits in favor of persons under the age of majority and offer various interest rates and conditions.
When asked whether it is possible to open a deposit for a child under 14 years old, there will be one answer - yes. This can be done by parents, guardians, trustees and third parties in accordance with paragraph 1 of Art. 28 Civil Code of the Russian Federation. They must be adult citizens of the Russian Federation, have a passport with temporary or permanent registration in the country, an INN and an additional document (a foreign passport is possible).
If a non-resident of Russia wants to open an account, in addition to a passport, a residence permit in the country will be required.
The institution accepts deposits in rubles, dollars, euros and precious metals. The minimum amount is 1,000 rubles. Rates in foreign currency are lower compared to rubles.
Sberbank plastic cards for children over 7
The easiest way to control your child's expenses without using cash and be able to protect them is with a personal debit card. It is available for registration in the name of the child if you already have an agreement to use any product from Sberbank.
Advantages of an additional card for a child:
- confirmation of online transactions via SMS;
- parental access to funds control;
- ability to set spending limits.
There is also a special type of Sberbank product for children left without care. The minimum amount of funds that can be transferred to the Social deposit is from 1 ruble. Interest on the deposit (and the rate here is 5.3%) is accrued quarterly. The validity period of such an account is 3 years, but you can specify in the contract its automatic renewal upon expiration of the period.
Is it worth opening an ISIS for a child: pros and cons
It is clear at what age you can open an IIS - there are no age restrictions in this regard. On the other hand, is it worth doing this at all? It’s clear that you want to invest your savings profitably so that you can then spend it on your children – on the same school, university, and you never know what expenses. But for this there is a good old money box or bank deposit.
Just keeping money “under the mattress” is unprofitable. Therefore, parents often simply go to the bank and open an account in their child’s name (or in their own name). Today, the most profitable deposits offer up to 6.5-6.8% per annum. But since inflation is around 4.5%, the net return will be slightly more than 2%. Of course, there are also advantages: put it down and do nothing. And even if the bank closes, the entire amount is within 1.4 million rubles. guaranteed to be returned.
Then is it worth applying for an IIS: what are its benefits? There are at least 2 answers to this question:
- Profitability is unlimited. And even at the minimum level the profit is 7-8% per annum. And on average it reaches 10-15% and higher.
- Thanks to IIS, you or your child (or better yet, together) will acquire irreplaceable investor skills. Even if you devote a few minutes a day to investing, then in 3 years (the minimum period of the deposit) you will be able to study the market very deeply. Of course, in the future you will be able to earn more and more.
But there are not only advantages - that means there are also disadvantages:
- Profitability is not guaranteed, because this is not a bank deposit. Although the probability of receiving it is almost 100%. Especially if you invest money in the most reliable instruments - OFZs, blue chips and others.
- Money is not insured. However, even if the broker closes, you can always transfer money to another broker.
Of course, you can risk nothing at all and earn 2% on bank deposits. But to get tangible benefits, you need to invest several million rubles. Otherwise, you will only be able to save money from inflation (and not always).
Targeted deposits in the name of the child
There are special savings accounts that allow you to save up for university education or other goals by the age of 18. Consumers can open targeted deposits without even visiting bank branches. Sometimes it is enough to select the appropriate menu item in your personal account, indicate the date, purpose of the deposit and the amount of the amount.
The advantages of such programs are the absence of mandatory payment deadlines and the absence of any initial payments. You can withdraw or top up accounts on any day; there are no commissions or fines from Sberbank. Any amounts can be transferred to the deposit, but the interest is always fixed and specified in the original agreement.
To open any type of target deposit, you can visit the office of the payment organization. Here experts will tell you more about convenient options for storage systems. Most often, in order to receive the contract in hand, you will have to present your own passport or other document confirming your identity, as well as documents about the birth of the child.
Restrictions on targeted deposits in the name of a minor include the following points:
- officially accessible only to parents or persons acting as guardians;
- To open, you need to visit a Sberbank branch in person; at the moment this cannot be done remotely;
- withdrawal of funds before the deadline is possible only with the permission of the guardianship authorities;
- replenishment is freely made in any way (mobile and Internet applications, bank offices, terminals and ATMs).
How to withdraw funds from a minor’s account?
Few people know that in this case permission from the guardianship and trusteeship authorities is required. If the account was opened in the name of a child who is not yet 18 years old, then only a legal representative can withdraw money from it.
Before this, he needs to contact the guardianship and trusteeship authorities. This government agency must give its permission.
Such a document is issued not only for a one-time withdrawal of savings, but also gives the legal right to unlimited disposal of money until the child’s eighteenth birthday. Such permission can only be issued to the mother, father, guardian, or adoptive parent.
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Sberbank compensation for target deposits
Currently, one of the largest financial and credit organizations in Russia is making various compensation payments. Among them are compensations for those target deposits in which the funds were held before 1991. Compensation for damage is possible both to the persons for whom the accounts were opened, and to the relatives and heirs of the depositors. They can compensate for losses even if the passbook was lost, based on the account number. The amount that will be reimbursed can be easily calculated by going to the Sberbank website. There you can familiarize yourself with the formula, which makes it easy to understand what amount of cash payments you can expect.
ISIS for a child and tax deduction
When discussing the age at which an IIS can be opened, some parents assume that if they make a deposit for a child, they will be able to receive an additional deduction or evade paying taxes. But in a legal sense, a minor’s deposit is no different from an adult’s deposit. Therefore, remember a few rules:
- The child has the right to receive tax deductions.
- If he received income and the account was closed in less than 3 years, he will have to pay 13% personal income tax.
- In this case, you will also have to return previously received tax deductions (if any were provided).
I'll explain with an example. A girl opens an account at the age of 16 (with the written consent of her parents). She can receive 1 of 2 types of deductions:
- For contributions (annually 13% of the amount contributed, maximum 52,000 rubles). The payment is provided through the return of previously withheld personal income tax. This is deduction A.
- On income (exemption from personal income tax 13% on profits received). This is deduction B.
The girl has the right to choose only one deduction out of two, and you can use them if the account has existed for 3 years or more. Obviously, in most cases, teenagers do not work officially, so it is more logical to wait 3 years and receive deduction B.
For example, during this time, with the help of her parents (or on her own), she earned 100 thousand rubles. As a general rule, personal income tax will be withheld from her at 13%, i.e. 13 thousand rubles. But thanks to the right to deduction, she will receive the full amount 100% (minus a small broker's commission).
Thus, IIS has no age restrictions: you can open an account for both a one-year-old baby and a teenager. But until the age of 14, parents can perform any actions only with the written permission of the guardianship authorities. And if the child is between 14 and 17 years old inclusive, he must obtain written permission from his parents and provide it to the broker.
What are the advantages and disadvantages
Things to note:
- it is comfortable to use,
- works with ATMs and terminals, i.e. you don’t need to stand in huge queues at the cash register to get cash or top up your account,
- you can send money to family and friends via ATM, SMS or the Internet,
- You can also pay for housing and communal services, television, cellular communications, etc. no commission,
- The card is easy to store; if you lose it, you will simply block it and no one will be able to use your money.
Many consider the document particularly reliable, as it is associated with the state structure of the Soviet Socialist Republic. People are attracted by visibility, something that credit cards lack so much. With no other card will you receive information so quickly about how, where and how much money went and came. To do this, you will have to use the services of Sberbank Online or visit a bank branch in person to get a statement.
The savings book must indicate all transactions made. You should definitely check whether erroneous extra data has appeared there.
This is all very good for the client, but inconvenient for the bank employee, who will lose a lot of time filling out the form instead of registering for several more clients. All entries in the book must be certified by the signature of an authorized bank employee.
Participation in the “Thank You” bonus program is especially worth noting . By connecting to it, for each of your spending transactions you will receive bonuses that can be exchanged for a discount of up to 99% of the purchase price at the bank’s partner companies.
In addition, a “Social” card was created especially for pensioners, into which you can receive a pension and spend it conveniently. At the same time, you will be accrued quarterly income in the amount of 3.5% per annum, details can be found here.
If we talk about disadvantages , then a passbook has many more of them than a plastic card, and in general it is not very convenient. To carry out any operations, you must take your passport and visit the bank office where this document was issued. It is possible that you will have to spend time standing in line. In addition, it is impossible to pay anywhere with a savings book.
