Kids investment accounts in Germany: child, parent or Frühstart-Rente?

German banks call it Kinderdepot, Junior-Depot or Juniordepot. Legally it is the same thing: an investment account in your child's name. The real choice is a different one. Either you invest in the child's name. Or you invest in your own name and mentally save "for the child". On top of that there may soon be the Frühstart-Rente, a state top-up. These three routes differ mainly in whose money it is.

Whatever you pay into a child account is a gift to your child. You cannot simply take it back, not even if you need the money later. Until the 18th birthday you manage the account as legal guardian. You have to invest the money in the child's interest. At 18 your child becomes an adult and can use it freely, for university or for a car. The Verbraucherzentrale (consumer advice centre) points this out explicitly. One advantage: money in the child's name is protected from the parents' creditors.

For tax, a child is a separate person. It has its own saver's allowance of €1,000 a year. Up to that, an exemption order at the bank is enough. Beyond it there is the basic tax allowance, €12,348 in 2026. If the child has no other income, it can apply to the tax office for an NV certificate (non-assessment certificate). Then the bank withholds no tax at all. With an account in your name, all income counts as yours, and your allowance is often already used by your own investments. For large sums: each parent can give each child €400,000 free of gift tax within ten years.

This is where a child account can have downsides. For BAföG, students under 30 may keep €15,000 of their own assets (§ 29 BAföG). Anything above is counted and lowers the grant. Parents' assets are not counted for BAföG, only their income. If your family receives basic income support (called Bürgergeld until mid-2026), the child's assets count too. Since 1 July 2026 each person under 30 has an allowance of €5,000. For family health insurance, the child's investment income above €1,000 counts as income. If it exceeds €565 a month (2026), free co-insurance ends. That happens from roughly €7,800 of income a year.

The Frühstart-Rente is not an account you pick, but a planned subsidy. The state wants to invest €10 a month for every child from age 6 to 18, €1,440 in total. The money belongs to the child but is generally available only from 65. Parents and others may add up to €6,840 a year, without subsidy. The bill (Drucksache 21/7864) had its first Bundestag reading on 25 September 2026. On 5 October 2026 the finance committee heard experts. The law has not been passed. So the Frühstart-Rente does not replace a child account for goals like a driving licence or university. Our topic page on the Frühstart-Rente has more detail.

Child accounts are offered by many direct banks and neobrokers. Trade Republic, for example, launched its child account in May 2025. Account keeping is usually free, and ETF savings plans start at small amounts. Often both parents with custody have to agree, and some providers require the parents to hold an account there themselves. We do not recommend any provider. Compare mainly savings plan costs, single order costs and what happens to the account on the 18th birthday.