Book-entry account for a child
Take advantage of the long saving period and aim for an effective return for your child’s savings with stocks.Invest easily in stocks for your child by opening a book-entry account. After you have opened the account, you can trade in securities such as stocks and ETFs.
Always affordable investing: you can open a book-entry account for your child for free and invest without monthly charges.
You can also buy international stocks to a book-entry account. You can improve the expected return of your investment by diversifying the stocks across different regions.
If your child is an OP cooperative bank owner-customer, you will pay no more than a 1% fee for domestic stocks, which means that you can even invest a smaller sum such as 100 euros.
Why should I open a book-entry account for my child?
The most important thing about investing is getting started. By starting as early as possible and having a long investment period, you can use the compound interest effect efficiently. An easy way to start saving for your child is to open a book-entry account. Stock investment is one of the best ways to pursue returns.
With a book-entry account, you can invest in securities such as stocks and ETFs for your child. With the account, you can diversify your investment widely in different targets without a deposit limit.
How do I open a book-entry account for a child? How to get started
Before opening a book-entry account, a minor needs a personal current account, and they must be an OP customer. Moreover, at least one parent must be an OP customer. If the child does not hold a personal current account, you can easily open it online.
Open a current account for a child here
Trading with the child’s book-entry account is possible with the guardians’ User ID on OP-mobile and in the op.fi service. The child can personally trade at the age of 18 or, with the guardians’ consent, after reaching the age of 15.
Book-entry account taxation
Taxes for a book-entry account are collected annually based on the sales profits and dividends gained in a year. Sales profits are taxed at 30–34% and dividends at 25.5–28.9%. In most cases, tax at source in excess of the Finnish dividend tax rate is taken into account and refunded in Finnish taxation. Capital losses are tax-deductible in annual taxation: the deduction can be transferred to capital gains in the current and subsequent five years.
You can sell the stocks at any point. Any profits and dividends will be withheld automatically.
What stocks should I buy for a child’s book-entry account?
It is advisable that the investment portfolio includes stocks of around 5–10 companies. You can well start with one company and gradually diversify the investment portfolio to include several companies. Diversification enables you to level out investment risk and avoid major value fluctuations.
The most popular stocks and ETFs for saving on behalf of a child in 2023
| Finnish equities | International equities | ETFs |
|---|---|---|
| Nordea Bank Abp | Telia Company AB | iShares Core S&P 500 UCITS ETF USD DIST |
| UPM-Kymmene Corporation | SSAB AB SER B | iShares Core MSCI World UCITS ETF USD |
| Sampo plc | Sotkamo Silver AB | XACT Fonder AB XACT Norden (UCITS ETF) |
| Fortum Corporation | SSAB AB SER A | iShares Core S&P 500 UCITS ETF USD ACC |
| Nokia Corporation | CIBUS NORDIC REAL ESTATE AB | Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C |
| Neste Corporation | Uniper SE | L&G Hydrogen Economy UCITS ETF |
| Nokian Tyres plc | Volvo Car AB | VanEck Morningstar US Sustainable Wide Moat UCITS ETF |
| KONE Corporation | Investor AB SER B | WisdomTree Artificial Intelligence UCITS ETF |
| Metsä Board Corporation | SAAB AB SER B | Lyxor Nasdaq-100 UCITS ETF |
| Kesko Corporation | SAMHALLSBYGGNADSBOLAGET I NORDEN AB SER B | Xtrackers II EUR High Yield Corporate Bond UCITS ETF 1C |
How can a child personally invest through a book-entry account?
A minor can invest conveniently with the guardians’ consent. The parents may authorise their child when they have turned 15 to manage their own investments. When a book-entry account has been opened for the child, the minor can independently trade in stocks on OP-mobile through the book-entry account.
Give authorisation for a young person’s saving and investing here
What happens to the book-entry account when the child turns 18?
After the child has turned 18, the management of the book-entry account is transferred from the parents to the child themselves. It is advisable to have a discussion with the child about savings and investments and their management. We are also pleased to help young people manage their savings on a long-term basis and responsibly. A person aged 18 or over may also book an appointment for free-of-charge investment advice.