As an expat family in the Netherlands, should we invest our child's savings and what options are available?

Savings vs. Investing: Key Differences

Savings deposits provide stability and protect your investment against market fluctuations, representing a safe choice for risk-averse investors who seek guaranteed returns. However, savings interest is on average only 0.15%, with a maximum of 1.4% on children's savings accounts. Investing involves more risk than saving, but on the other hand, you can achieve higher returns. In the long term (more than 15 years), the expectation is usually met, because otherwise no one would invest.

Investment Options in the Netherlands

Several options are available for investing on behalf of children:

• Children's savings accounts: The most well-known solution is the classic children's savings account registered directly in the child's name. ABN AMRO's KidsFuture Savings Account currently offers 1.25% interest.
• Savings deposits: You can lock in a specific amount for a predetermined period with a predetermined interest rate.
• ETF-based investment accounts: ETF investment plans offer several advantages—they are known for their transparency and low management costs. The money in an investment account belongs directly to your child, optimizing use of gift tax, and you do not have to pay inheritance tax on the money.
• Investment accounts in your own name: You can make investments in your own name to be allocated to your children, which gives more freedom of action because it is not tied to a minor, and you can focus on a varied portfolio.

Major providers: ABN AMRO and ING offer investment instruments, and independent platforms such as Peaks, Brand New Day, and Scalable Capital also provide child investment accounts in the Netherlands.

Comparing Products and Fees

When choosing an investment account, understand what you pay. For example, Peaks has a simple model: all customers pay €1.99 per month with no transaction fees, and deposits and withdrawals are easy to manage. When using a broker for independent ETF investing, some platforms like DEGIRO offer zero fees for certain popular ETFs in their core selection. When comparing products, look at:

• Annual management fees or platform charges
• Trading commissions (if applicable)
• Currency conversion fees (when relevant)
• Expense ratios of underlying funds or ETFs
• Account maintenance fees or inactivity charges

Choosing the Right Risk Level

Investing for a child usually means you have many years ahead. This longer time horizon allows investments to grow and smooth out short-term fluctuations. Still, the level of risk you choose should feel comfortable and appropriate for your situation. Banks and investment institutions are legally obliged to draw up a risk profile for each client. The most common classification is "lower risk," "medium risk" and "higher risk." With an investment horizon of up to 18 years, investing has less risk than investing money you will need in the short term.

Tax Implications: Gifts and Wealth Tax

When you invest money for your child, your deposits are treated as gifts (schenking) under Dutch tax law. These rules apply based on Dutch residency, so they are relevant even if you or your child are not Dutch nationals. In 2026, you may gift up to €6,908 per year to your child without paying gift tax (this is an estimate based on expected annual indexation from the 2025 €6,713 threshold; the Dutch government publishes official figures each autumn).

Parents must add the assets in the children's savings account to their own assets in box 3 in their income tax return. This also applies to any deposits made by grandparents. For the purpose of income tax, your child's assets are assigned to you, meaning you have to pay tax on your child's money as if it were your own. However, as soon as your child turns 18, they need to submit a personal income tax return.

Expat-Specific Considerations

Good news: Expats can deposit using the Dutch banking system and start investing without any further restrictions. If a foreign individual invests in the Netherlands there are no specific regulations or laws applicable. Whether the investment will result in a yearly non-resident personal income tax obligation depends on the type of investments. Box 3 income relates to savings and investments, including shares and bank accounts, and includes savings accounts maintained outside the Netherlands. This means your worldwide assets may count toward Dutch wealth tax if you are tax-resident in the Netherlands.

Involving Your Child in Investment Understanding

The Dutch family spending institute Nibud suggests you start teaching your child to save money from the age of eight, by helping them decide on a target and set up a savings plan. Children under the age of 18 are not allowed to invest themselves. However, as a parent or other legal representative, you can invest in the name of the child. You, as a parent, still have control over the money until your child turns 18. This means that you decide whether money is saved in a savings account or invested in an investment account, as well as whether any withdrawals are made. As soon as your child turns 18, your access to the investment account stops. From that point onwards, your child is considered to be an adult and able to make their own decisions. Your child can gain access to the account by going to a branch office with a valid ID and then determines what happens to the investments.

When Opening an Account

When you apply for an account for a minor, the law requires that you take the child's interests into account. You must ensure that you have authorisation from a Sub-District Court. For investing the child's assets carefully, you must have sufficient knowledge and experience.

Final Notes

Dutch rules around gifts, taxes, and investment accounts can differ from what you may be familiar with in your home country. Rules change and the information above reflects general guidance for Dutch tax residents investing for children. Before making decisions about your child's savings and investments, verify current thresholds and regulations on the official Dutch Tax Administration website (Belastingdienst) and confirm account rules directly with your chosen bank or platform. This is not personalized financial, tax, or investment advice.

References

• 1. How to start investing for your children | Scalable Capital
• 2. Save for your child's future - Savass
• 3. Investing in the name of a minor - ABN AMRO
• 4. Investing for your child in the Netherlands: a guide for expat parents
• 5. Investment account for children - Finanzas en Holanda
• 6. Open a savings account for your child - ING
• 7. Saving or investing for your child? What you should know | bunq
• 8. Five questions about saving for your child - ABN AMRO
• 9. How to Financially Prepare for Your Children’s Future
• 10. From a bank account to zakgeld: handy financial tips for expat parents - DutchNews.nl