Savings for a child in Germany: how to save

Updated:
07.10.2026

When parents think about building capital for their children—for education, a flat, a car, a wedding or a first driver’s licence—it is a sensible step. Providing starting capital will help significantly ease future expenses, such as tuition or buying a home. For example, getting a driving licence in Germany can cost between 3’000 and 4,000 euros. In such situations, children’s savings can turn out to be very useful.

However, be careful about what you are offered under the guise of children’s savings. Many advisers often recommend standard pension plans which, although useful and effective for long-term saving, are not suitable for purposes related to achieving financial goals before the age of 18. These plans may have “children’s” names and designs, but they do not meet the objective of saving for children and often come with high fees in the early years. I explain separately which insurance a child really needs and what you can do without: health, protection and savings for children.

It is important that you understand all the nuances even before signing the contract. We will explain how to properly choose savings plans for children and what to look out for.

Pension schemes as long-term capital accumulation

What pension schemes are really for and who they are suitable for.

Pension plans are advantageous and appealing if you intend to save specifically for your child’s retirement. Thanks to compound interest and contributions over many decades, a significant sum will accumulate in the account. The main important aspect of a pension plan is that from at least the age of 62 (early retirement), your child will be able to receive payouts.

Pension investments Unit-linked life insurance

Most often, this very pension scheme is what lies behind children’s savings.

Fondsgebundene Lebensversicherung allows invest money in investment funds. And, by the time they reach retirement age, your child will have a significant sum. They can use this as a lifelong supplementary pension or receive it a substantial one-off payment.

There is no guaranteed rate here. You may have a high income, but it can come with high risks. And, ultimately, your payouts depend on the market situation.

Tax exemption on profits under code 50%, subject to certain conditions being met
You choose the contribution amount yourself
Payments can be suspended or the contract terminated
Partial withdrawal of funds is possible
It can be passed down by inheritance

Calculation example of final capital:

initial amount: 50 euros;
monthly top-ups: €50;
Interest rate: 8% per annum;
number of years: 67 years.

The final amount after 67 years with contributions of €40,200 is €1,406,225.

You can find out more about other pension schemes and the pension system in Germany in our article

More details

Better children’s savings schemes

When analysing funded pension schemes, it is clear that they are unsuitable if:

it is planned to use the accumulated capital before the child reaches retirement age;
you are going to pay contributions until the child turns 18.

For purposes such as buying a car for a child, saving up for a flat, paying for tuition or living expenses during studies, getting a driving licence or organising a wedding, we recommend considering alternative savings options.

Investment programmes

This is not just saving, but an investment in your children’s future.

Even if you have never invested before, with fully automated programmes (RoboAdvisors) it won’t be particularly difficult. Investments starting from 50 euros will already allow you to begin investing independently. At the same time, personalised asset management will take into account your risk appetite, goals, investment timeframe and contribution amounts.

For this purpose, we suggest using online platforms for self-directed investing

EasyInvesto

Professional online asset management will allow you to calculate and achieve your investment and financial goals. This is investing in the future.

Your investment objectives and acceptable risk level have been taken into account
A low annual fee of 1.2%
Investing is available with a one-off initial contribution from 400 euros and a monthly payment from 0 euros with increments of 50 euros
Experts manage your assets
Capital allocation strategy based on the current market situation

Risk of financial product values being dependent on market conditions
Investing in different currencies entails currency risks
Changes in the international political arena are linked to the risk of changes in the tax or legal system of other countries
Inflation can devalue investments

ComfortInvest

Professionally selected and weighted investments. Investment decisions are based on market analysis. The ideal combination of the most attractive offers combined with consideration of future trends.

Focus on companies’ environmental and social responsibility
You can deposit and withdraw money daily and close the agreement at any time
Investing is available with a one-off minimum contribution of €100 and an optional monthly contribution starting from €50
Investing in the most attractive stock, commodity and bond markets

Risk of financial product values being dependent on market conditions
Investing in different currencies entails currency risks
Changes in the international political arena are linked to the risk of changes in the tax or legal system of other countries
Inflation can devalue investments

We have been testing both platforms for a year now, and the actual returns over the year are +19.39% for EasyInvesto and +17.4% for ComfortInvest. We shared more details on the results in our Instagram.

instant access savings account

Type of savings account in Germany. This form of savings has high flexibility and liquidity. It is not used for transactions, but for investing and saving surplus money. It is suitable for storing an emergency fund.

Depositing or withdrawing money from the account can be done without restrictions. The interest rate is variable and is calculated on the balance of the depositor’s own funds.

You can find the current interest rates on the website of the bank you are interested in. At the time of writing, offers of 2.77% and 3.5% were available online, but the average is around 1.5%, which does not even cover inflation.

Gold

Nowadays, gold is consistently used as a way to preserve wealth. And there is a simple explanation for this: the price of gold is rising, global-scale conflicts and crises in the financial sector increase the value of gold, and experts at all times have advised having precious metals in one’s investment portfolio.

Gold is a great additional a method of preserving savings. More details about investing in gold in our article.

The situation in Germany regarding long-term financial planning can be described as stable. However, any long-term investments require taking current economic conditions into account and choosing diversified investment portfolios. It is proper planning that will help minimise risks, and preserve and grow your investments. Therefore, we consider it important to approach the topic of savings for children in a thoughtful and balanced way, in order to secure a stable financial future for them.

We will help you find the best savings programme for your individual situation. A consultation at FINBER is free, enabling you to make the right decision and choose the financial products that you genuinely need.