In the past, many children's savings plans were closed. Under this so-called big names savings plans or study plans were put on the market.
These insurance policies were concluded at an early age of the child, with the intention of the eventual proceeds to pay for the study of child completely or partially. The final yield was tax under certain conditions. It was also possible to invest the invested money. The yield afterwards was in this case, depending on the returns on the investments. Because insurers pass on high costs in this insurance, this is not an attractive form to build up capital.
These are policies where a premium is periodically inserted with the intention to build up a capital that is paid at maturity at one time. In most of the cases there is a risk of death in coverage processed. Here you might think of an exemption from premium payment on the death of one of the parents. Pickled premium net of expenses, was invested in the policy. The insurance policies were taken out by many parents for the children. Today, these policies are hardly locked.
The favorable tax treatment no longer exists. What remains is a policy where money will be paid after the insurer has settled high costs. Insurance savings are still offered, but hardly close. This is caused by the fact that it is now common knowledge that insurance companies charge high fees for the preparation and management of the insurance.
The efficiency that makes the insurer on the invested premiums is similar to an average savings account. The big difference is that the insurer does not fully utilized the contributions paid to witness returns. In a savings account, you can deposit the desired amount without any withholding amounts.
A second advantage of the savings account is that you can take back the money, in case you do need it. The savings insurance must be bought in that case, which the insurer may charge again.
A third advantage of the savings account is that you can easily transfer the money to a bank offering higher savings rates. This way you can ensure the highest possible efficiency.
An advantage of the savings insurance coverage is that there is a risk of death has been processed in. Although this coverage does entail costs, coverage can have an added value. However, this is no reason to conclude a savings insurance. Indeed, you can for a small fee also close a separate life insurance policy. A term life insurance ?? 20 000 upon the death of one of the parents of the child, takes up a few bucks a year.
Banks offer children's savings accounts, with nice presents are given away. Often the height of the savings account is lagging behind compared to the regular savings account. A gift and a nice folder is no reason to close a children's savings account. It is best to choose a dull but profitable savings account. Ultimately, it still only comes to have the returns that you made at maturity.