Opening a savings account for a child is one of the best financial decisions you can make as a parent: compound interest has decades to work its magic. A monthly deposit of €100 over 18 years at an annual rate of 5% generates more than €34,000—compared to the €21,600 in principal contributed.
What to look for in a children’s account?
- No fees: no children’s account should charge maintenance fees
- Interest on the balance: let the money earn something while it sits there
- Access to investment funds: for long-term savings, it outperforms any regular account
- Ease of use: a simple opening process for parents/guardians
- Security: institutions regulated by the FGD
Children's savings options in Spain 2026
Trade Republic — Custodial account for minors
Trade Republic allows parents to open custodial accounts for minors with themselves as account holders. The account offers 2.02% APR on the balance and access to automatic savings plans in ETFs starting at €1/month. It is the most comprehensive option for parents who want to combine savings and investing from the start.
- 2.02% APR on the balance — available from the first euro
- ETF investment plans starting at €1/month (automatic dollar-cost averaging)
- Debit card (account holder must be 18 or older)
- No maintenance fee
MyInvestor — Best for index funds
If your goal is to invest for the long term for your child’s future (college education, first home), MyInvestor lets you invest in Vanguard funds starting at €1. A long-term global index fund outperforms any savings account — historically 6–8% annually vs. 2% for interest-bearing accounts.
- Access to Vanguard MSCI World funds starting at €1
- Interest-bearing account as an emergency fund: 2.10% APR
- No custody fees
- Tax-free transfers between funds
Bankinter Junior
Bankinter offers a specific product for minors with 0% maintenance fees. The Bankinter account for adults offers up to 5% APR in the first year with direct deposit — if you’re already a Bankinter customer, the Junior account is free and convenient.
Caixabank Mini and BBVA Junior Account
Major banks (CaixaBank, BBVA) offer commission-free accounts for minors. They do not pay interest on the balance, but they are useful as a learning transaction account for teenagers.
Savings account or investment fund?
It depends on the time horizon:
| Time Horizon | Option | Expected return | Risk |
|---|---|---|---|
| 0–3 years | Interest-bearing account (Trade Republic, Openbank) | 2.00–2.27% | None |
| 3–7 years | Deposit + interest-bearing account | 2.00–2.85% | Low |
| +7 years | Global index fund (MyInvestor) | 5–8% historical | Medium (market) |
Taxation of savings for minors
Returns generated in accounts held in the minor’s name are taxed under their personal income tax, not their parents’. A minor with no other income has a deduction of ~€5,550 — in practice, interest from children’s accounts is rarely subject to effective taxation.
If you invest in funds in the minor’s name and there are gains upon redemption, they will be taxed as part of their savings base. It is advisable to redeem the funds in years when the young person has low income (before their first job).
Contributions from grandparents
An effective strategy: grandparents can make annual gifts to the child. In Spain, gifts from parents or grandparents to children/grandchildren qualify for exemptions or reductions in Inheritance and Gift Tax depending on the autonomous community. Invest those gifts in an index fund starting from the child’s early years.
Practical example: €50/month from birth
Monthly contribution of €50 for 18 years in a global index fund (historical annual return of 6%):
- Total contributed: €50 × 12 × 18 = €10,800
- Estimated value at age 18: ~€18,400
- Compound interest gain: €7,600 — 70% more than the amount contributed
The key: start as early as possible and be consistent, regardless of market conditions.