With the holidays fast approaching, many children will receive gifts of cash, but parents may wish that some of this money could be put aside for more important things than just toys.

Opening an account for a child can be a great way of teaching them about money and developing financial skills that will be of benefit later in life. Depending on their age, children can learn how to become mindful consumers and set short and long-term savings goals. Older children can begin to learn basic ideas about investing, such as the concept of compound interest (when you earn interest on both your savings as well as on past interest from your savings).

It is now possible to open an account for a child at AMFIE. The new AMFIE 0-18 account will offer significantly higher interest rates in order to encourage children to save and stay motivated. Children will discover that small amounts invested regularly over a period of time can add up.

Every child who opens a 0-18 savings account will receive a free member share. There will be no management fees and no minimum deposit required. In keeping with AMFIE’s cooperative spirit, all 0-18 accounts will be remunerated at the same rate, regardless of the amount deposited.

While the application to open a 0-18 savings account must be made by at least one AMFIE member who is a legal representative of the child, members who would like to open accounts for their grandchildren can simply sponsor a child’s legal guardian to become a member.

Grandparents may be interested to know that numerous countries provide options for giving limited amounts of money to grandchildren without paying inheritance taxes. Such tax-free gifts can then enable grandparents to cut down on the inheritance tax their children will eventually have to pay, while enjoying the benefits of giving during their lifetimes*. With the 0-18 account, one can give, knowing that the funds will add up until the child reaches majority, because the capital and interest in the 0-18 account are blocked until the account holder becomes an adult (at the age of 18 years. When the child turns 18, the account transforms automatically into a regular multicurrency account and the account holder is entitled to all products and services provided by AMFIE.

* Should you wish to explore this option, we suggest you consult with your tax advisor to learn the best solutions available in your country of residence.