05.11.2026
Even with small amounts, parents, grandparents and godparents can build up assets for a child over the long term. A funds or ETF saving plan enables regular investment from as little as 20 francs and opens up attractive potential returns over the years. Depending on who opens the saving plan, the custody account is in the name of the child or an adult. We explain here which variant is suitable, how inpayments work and what to bear in mind when children reach legal age.
An ETF or funds saving plan is a great way of giving your child, grandchild or godchild a financial headstart. If you start saving for a child early on and make regular payments, you’ll put your money to work for longer. Price fluctuations even out when investing regularly for children over a long period of time. This tends to offer better potential returns than larger, infrequent payments. Saving plans for children are an advantageous alternative to a children’s savings account. With an ETF or a funds saving plan for children, the potential returns are often higher than with conventional savings accounts. Even small, regular amounts – around 20, 50 or 100 francs per month – can pay off over the years.
Regular savings can pay off – particularly given that price fluctuations are offset with a savings plan when investing for children. The cost averaging effect reduces the risk of investing at an unfavourable time: with regular investments of the same amount, as with an ETF savings plan for children, more units are automatically purchased when prices are low – and fewer when they are high. By investing over a longer period of time, the child receiving the gift benefits from the long-term growth of the economy.
When investing with an ETF or funds saving plan for children, there is always a certain market risk due to price fluctuations. In this respect, saving with an interest-bearing children's savings account involves fewer risks – and may be the better choice for some parents, grandparents or godparents. In many cases, combining both options makes sense: a children’s account or a children’s savings account for everyday life and for short-term savings goals – and ETF or funds saving plans for long-term asset growth.
An ETF saving plan automatically and regularly invests in an index ETF (exchange-traded fund). A funds saving plan invests in a traditional investment fund. Both options are suitable for long-term, systematic asset growth and can be managed with small amounts. Thanks to regular inpayments, both variants reduce the risk of investing at the wrong time. The costs for ETF saving plans are often lower than for funds saving plans – particularly in the case of actively managed funds.
Returns from investments that are reinvested generate returns – such an effect accelerates asset growth over the years. This compound interest effect is particularly beneficial if you invest for a long time and reinvest the returns. In other words, a longer saving period increases the gains. Example: with the compound interest effect, a monthly payment of 20 francs and a hypothetical average return of 4 percent over 18 years will generate around 6,312 francs. It means a savings plan is a good alternative to a savings account.
If the custody account is in the child’s name, the parents are responsible for administration, control and strategic decisions, as well as for choosing a suitable ETF or funds saving plan. If, on the other hand, the custody account is in an adult's name, this person is responsible. You need to carefully consider which investment strategy to choose: it’s important not to make mistakes based on emotional decisions so that you don’t jeopardize the money saved for the child.
Parents, grandparents or godparents need to weigh up the risks and potential returns and choose a suitable strategy. The investment horizon, risk appetite and investment goal all play a role here. A suitable way to reduce cluster risk for a children’s custody account is via broad diversification. For a custody account with a long investment horizon of 10, 18 or more years, a higher equity component is often advisable, as temporary setbacks and price fluctuations can be evened out over time. As the start of an apprenticeship or studies nears and asset depletion is planned, the risk can be reduced gradually – such as by reducing the equity component or pausing new purchases.
Parents, grandparents or godparents who would like to give their child, grandchild or godchild a gift of money for their birth, birthday or another occasion often open a children’s savings account or occasionally pay into one. However, a children’s custody account where payments are made via a savings plan usually offers higher potential returns and greater flexibility. What’s more, the child can continue investing as an adult and make an early start on retirement provision. You decide how much you pay in: saving plans are flexible. Inpayments can be increased, reduced or suspended as required – depending on your financial situation.
Only parents can open a children's custody account in the child’s name. In Switzerland, the custody account is legally owned by the child, and the parents manage it until the child's 18th birthday, after which the child can manage it themselves. In other words, you give the money to the child directly; it becomes part of the child’s assets. At 18 the money can be paid out or further invested – the recipient, now of legal age, assumes responsibility for managing it.
A custody account in an adult's name is more flexible when opening and paying out, but legally belongs to the adult. In this case, parents, grandparents or godparents remain the owners of the money and can determine how and when it is transferred. This enables parents to reduce conflicts if, for example, not all of the money is suddenly to become available at 18.
Besides the market risk that you’re always exposed to when investing due to price fluctuations, there are other things that you should consider when looking at savings plans for children. As with all financial investments, custody account fees, product costs (total expense ratio, TER) or transaction costs can also reduce returns when investing for children. For example, a higher TER compared to a product with a lower TER can lead to considerably lower final assets over 15 or 20 years. Bear these costs in mind when it comes to an ETF or funds saving plan for children.
As with other financial investments, a children’s custody account involves currency risk, which can have a negative impact on returns. However, it isn’t usually advisable to opt for an ETF or a fund with an exclusively domestic currency, which in turn, limits diversification. ETF and funds saving plans for children can offer higher potential returns than a children’s savings account, but also entail costs and investment risks.
With a funds or ETF saving plan for children, you can build up assets for a child over a longer period of time, even with small, regular amounts. Flexible inpayments make the saving plan a good alternative to the children’s savings account.
A saving plan automatically purchases ETFs or fund units at the selected intervals – similar to a standing order. This can be done conveniently, simply and online via e-finance. Opening a funds saving plan or an ETF saving plan for a child is easy: a funds saving plan requires an account and a fund custody account, which can be opened in the child’s name. For an ETF saving plan, e-trading is required. This custody account must be in an adult's name (account can only be opened from the age of 18). E-trading is PostFinance’s online trading platform that you can use to carry out stock exchange transactions easily and conveniently online.
As much as is possible without pressure in the long term. It’s possible to build up assets over the years with just 20, 50 or 100 francs per month. Thanks to low minimum contributions, a saving plan is also worthwhile with small instalments, and the amounts saved can be adjusted flexibly. The important things are regular instalments and the term.
Yes, parents, grandparents or godparents can pay into the reference account (such as a children’s account or a parent’s account). But it’s important to note that the person in whose name the account or custody account is held is always responsible for the tax return. That person is liable for tax on the assets and any income.
When prices fall, subsequent purchases by the saving plan are automatically cheaper. Saving over the entire time improves the chance of recovery. Select a suitable level of risk. Initially, the risk may be higher due to the long savings period. Two to three years before the 18th birthday, the risk can be gradually reduced – or the recipient can continue to invest and continue the long-term strategy independently.
