Barnas Sparekonto (Children’s savings account)

If your child is not already a customer, the child will automatically become a customer when opening a Children's Savings Account.

There are advantages and disadvantages to both options.

Advantages and disadvantages of saving in the child's name

Advantages:

• The money belongs to the child legally.
• Gives the child a secure financial start when they turn 18.
• Can be a good way to teach the child about saving and finances.

Disadvantages:

• When the child turns 18, you lose the right to manage the account.
• If the child's assets exceed 2 G (the National Insurance basic amount), the County Governor may take over the administration (unless you have added a gift declaration).
• High assets may reduce grants from the Norwegian State Educational Loan Fund.

Advantages and disadvantages of saving in your own name

Advantages:

• You have full control over the money at all times.
• No risk of the County Governor taking over the administration.
• Flexible when there are changes in family finances.

Disadvantages:

• The funds form part of the estate in the event of divorce or death.
• Less clear to the child that the funds have been set aside for them.

There is no tax difference, as your child will be included in your tax return in any case. Read more about saving for children

When the child reaches the age of majority, they gain full control of the account. The Children's Savings Account becomes an ordinary savings account, and the guardians automatically lose access.

Yes. If the child's assets exceed a certain amount, the grant may be reduced. This applies regardless of whether the funds are held in a Children's Savings Account or another account in the child's name

Section 95 of the Guardianship Act grants one of the guardians the right to open an account for the child even if there are two guardians. The other guardian will be notified of the account opening.

The guardian who opens the account chooses whether the other guardian should be able to be added to the account at a later date, or whether they should have sole responsibility for this account given as a gift (gift declaration).

The account becomes ready to use immediately with the signature of the guardian who creates the account.

The account can be opened for a joint child alone and with provisions regarding access and right of other persons to operate the account in accordance with Section 95 of the Guardianship Act and the terms in the Account Agreement Part A, point 3.4.2.

A guardian who is themselves the gift giver can, when opening the account, determine the right of other persons to operate the account, which means that the other guardian should not be able to have access to or manage the funds given as a gift. In practice, this is done by attaching a gift declaration to the account when it is opened, which cannot be changed at a later date. The gift is given with the restrictions stated in the gift declaration.

If you as a guardian wish for the other guardian to also be part of the child's account, a new account must be opened for which both guardians have responsibility. The child can have several Children's Savings Accounts in their name.

A gift declaration can be used in several ways and must be completed when the account is established.

With a gift declaration, you can determine that the County Governor does not need to have responsibility for this account if the child's total assets exceed two times the National Insurance basic amount (2G).

With a gift declaration, you can choose whether you wish to have the right to operate the account alone, even if the child has two guardians.

The money must always be used in the child's best interest. It is your responsibility as guardian to ensure that the savings benefit the child.

If there is no gift declaration attached to the account, the County Governor may take over the management of the money. With a gift declaration, you retain control.