Nainen ja tyttö

Saving for a child

Valuable gift for the future

  • Secure your child’s future

    Saving for a child is a valuable gift for the future. Even a small regularly saved amount will grow into a nice nest egg over the years for studies, a new car or the first home

  • Systematic investing in a mutual fund

    The time horizon of saving for a child is long. Considering that money in an account hardly generates interest, it pays therefore to make funds grow in a mutual fund whose expected return is markedly higher than in the bank account.

  • Better return for long-term saving

    The compound interest phenomenon ensures that money works for your. The earlier you start saving for you child, the more you will gain from the compound interest phenomenon 

To start saving, your child
must have a personal account.

If your child already have
the account, you can start investing in mutual funds.

How to start investing in mutual funds for your child

  1. Open an account for your child

    You need to open an account for a child to start saving for your child. To open the account, the child’s personal identity code and name are needed. If the child is a minor, consent from both guardians is needed. Please note that you cannot open an account for an unborn child.

  2. Accept the OP Savings and Investments Agreement

    Before any funds and other investment products can be bought, the guardians must accept the OP Savings and Investments Agreement for their child. The most convenient way to start saving is on our service. Then we will send you the agreement for your approval through our Electronic Signature Service.

  3. Start saving

    When you have opened the account and approved the agreements, it is time to consider suitable investment vehicles. For example, a monthly investment in a mutual fund offers decent diversification and an opportunity for a better long-term return. 

If you like, you can also book an appointment for an online meeting or at a bank branch to go through your options. If the guardians are unable to make the meeting together, we recommend one of them sending a consent with a power of attorney over the eServices for the opening of the child's account and the starting of the saving. The guardian present at the meeting can then activate the services for the minor on their own.

The funds in the name of the child are the property of the child. The child's guardians have a management right to the funds, but the law lays down stipulations on their use

Better return for long-term saving

The parents can put money into the child’s account, and money gifts given by grandparents and godparents can also be put into it. It pays to transfer savings from the child’s account to savings products with higher expected return, such as mutual funds. There are two ways of investing in the fund: the guardian may use their own bank account to subscribe for fund units for their child or the guardian may use directly their child’s account to invest in the fund. 

The amount invested monthly in the units of a mutual fund is the most popular way of saving money for the child. You can determine the amount yourself – there is no minimum amount and you can always change the amount. You can also transfer a lump sum to the fund a few times in a year if systematic investing is not possible.

The saving method should be chosen based on when the intention is to use the funds. The funds invest their assets in fixed-income and equity markets and offer the saved funds decent diversification and the opportunity for a long-term return. The larger the proportion of equity investments in the fund, the higher the expected return. The time horizon for saving for the child is long. This means that equity funds offer the best opportunity for returns. For example, it is easy to choose a suitable option for your child from the saver’s funds and the sustainability themed funds. If you wish to invest all funds in equity markets, index funds are a cost-effective investment option.

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