---
title: "Opening a Junior Depot: the complete guide for parents"
description: "Opening a Junior Depot: requirements, broker comparison, tax advantages and the right ETF savings plan for your child."
canonical: "https://investboard.de/en/wissen/junior-depot-eroeffnen"
language: "en"
published: "2026-03-30"
modified: "2026-03-30"
last_verified: "2026-07-27"
author: "David Bartas"
author_url: "https://investboard.de/ueber-uns"
reviewer: "David Bartas"
reviewed: "2026-07-27"
---

# Opening a Junior Depot: the complete guide for parents

Step by step to a securities account for your child

## In short

A Junior Depot, a securities account in a child's name, legally belongs to the child; parents manage it in trust, deposits count as irrevocable gifts. In 2026 a child can receive around EUR 13,384 of investment income tax-free, provided it has no other income. Free family health cover ends near EUR 565 a month; at 18 the child controls everything.

- A Junior Depot is held in the child's name and belongs, in law, to the child
- The long horizon and the child's own allowances are the real advantage
- At 18 the account passes fully into the child's free control

A Junior Depot is not an account that parents run for their own benefit. It is wealth that belongs to the child from the very first day. Whoever invests early and transparently can use the long horizon a child still has, and along the way draw on several tax allowances that adults simply do not have at their disposal.

The long horizon is the real advantage. A child often has 18 years or more before the money is needed, and across that time the child's own allowances work alongside the portfolio year after year. This article explains how a Junior Depot is built in legal terms, which allowances apply in 2026, and where the often-overlooked trap in the Familienversicherung (Germany family health-insurance cover) lies.

> With a Junior Depot the most important decision is not the investment, but the recognition that the wealth belongs to the child.

## Why a Junior Depot?

A Junior Depot, also called a Kinderdepot (children's securities account), is a securities account held in the name of a minor child. It suits long-term goals such as later education, the start of working life, or simply a sum of starting capital at the age of majority. The central reason so many families run a separate account for the child, rather than saving alongside it in their own account, is the combination of time and tax status.

Time, because a long investment horizon lowers the probability of losses over long periods without ever ruling them out. Capital remains exposed to risk at all times, and past or assumed returns are no promise for the future. Tax status, because a child holds allowances of its own: an individual Grundfreibetrag (basic tax-free allowance), an individual Sparer-Pauschbetrag (saver's lump-sum allowance) and, where applied for, the option to receive investment income gross through an NV-Bescheinigung (non-assessment certificate), that is, without tax withheld at source.

What matters is to understand the Junior Depot as what it is in law: tied wealth of the child, not a hidden second account for the parents. This distinction carries every further point in this article.

## Requirements and powers of representation

A Junior Depot is opened in the child's name. Parents act as legal representatives. At majority the account passes fully to the child.

While the child is a minor, both parents with custody manage the account together as part of their duty of asset care (§ 1629 BGB read together with § 1626 BGB). In doing so the parents act in a fiduciary capacity: they administer another person's wealth, namely the child's, in the child's interest. That is more than a formality, because it governs what may and may not be done with the money.

A payment into the Junior Depot is, in law, a gift to the child. It is in principle irrevocable; a right to reclaim exists only within the narrow limits of § 530 BGB, for instance in cases of gross ingratitude. The money paid in is therefore permanently the child's wealth. Parents may not use it for their own purposes, nor draw on it to cover ordinary maintenance, which they are obliged to provide in any case. The wealth is earmarked for the child. Even a withdrawal to which a child consents can later be challenged and give rise to claims for damages.

If parents treat the account in practice as their own wealth, for instance through withdrawals for their own purposes, the tax office can attribute the investment income to the parents (abuse of structuring under § 42 AO) and reclaim tax. This is a case-by-case risk, not an automatic consequence: the case law of the Bundesfinanzhof (Federal Fiscal Court) has narrowed this attribution in recent years and, for example, has not treated a gift followed by a sale as abusive across the board.

At the age of majority (§ 2 BGB) the parents' duty of asset care ends automatically. Sole authority to dispose passes to the child, and from that point there is no longer any legal means to restrict how the money is used. Whoever plans for this early avoids later conflict.

## Broker comparison for Junior Depots

The terms for Junior Depots differ between providers, and they change regularly. Rather than name individual providers, it is worth choosing an account against fixed criteria. The overview below shows what to look for in the selection.

| Criterion | What to look for |
| --- | --- |
| Savings-plan execution | Free or very inexpensive execution of ETF savings plans, since with a Kinderdepot regular small instalments are the normal case |
| Minimum savings rate | A low minimum rate, so that even small monthly amounts are possible |
| ETF selection | A broad, savings-plan-eligible range of globally diversified ETFs, not just a short promotional list |
| Freistellungsauftrag and NV-Bescheinigung | The option to register the child's own Freistellungsauftrag (exemption order) and to take an NV-Bescheinigung into account |
| Transfer at 18 | A clearly regulated, free transfer of the account into the child's sole control at majority |

Check the terms directly with the respective provider before opening the account. Fee models, promotions and savings-plan-eligible ETF lists change, and only the provider's current information is binding.

## Tax advantages of the Kinderdepot

**Key takeaways:**

- Children have their own Grundfreibetrag (EUR 12,348 in 2026) and their own Sparer-Pauschbetrag (EUR 1,000)
- With an NV-Bescheinigung, investment income stays tax-free up to about EUR 13,384 (2026)
- Gifts of up to EUR 400,000 per parent every 10 years remain free of Schenkungsteuer

The tax appeal of the Kinderdepot lies in the fact that several of the child's allowances stack on top of one another. They apply, however, only when the investment income is the child's sole taxable income. The building blocks for the year 2026 are:

| Building block | Amount 2026 | Basis |
| --- | --- | --- |
| Grundfreibetrag | EUR 12,348 | § 32a EStG |
| Sparer-Pauschbetrag | EUR 1,000 | § 20 Abs. 9 EStG |
| Sonderausgaben-Pauschbetrag | EUR 36 | § 10c EStG |

### Tax-free investment income of a child (2026, illustrative)

```text
EUR 12,348 + EUR 1,000 + EUR 36 = about EUR 13,384
```

This sum of about EUR 13,384 is a planning figure, not a guaranteed floor. It holds only as long as the investment income is the child's sole taxable income. If the child has income from a holiday job, for instance, the calculation shifts. Alongside this: parents can transfer up to EUR 400,000 per parent to each child every ten years free of Schenkungsteuer (gift tax) (§ 16 ErbStG). For ordinary savings amounts a Junior Depot payment falls far below that, so Schenkungsteuer is not a concern for normal savers.

Shares in equity funds, which include broadly diversified equity ETFs, additionally benefit from the Teilfreistellung (partial tax exemption) of 30 percent (§ 20 InvStG). It applies to distributions, capital gains and the Vorabpauschale (advance lump-sum tax on accumulating funds). Only the part remaining after that counts against the allowances.

## NV-Bescheinigung and Freistellungsauftrag

There are two instruments with which the tax-free status of the child's own income can be put into practice. They operate on different levels and do not exclude each other.

The **Freistellungsauftrag** (exemption order) is granted directly with the bank and exempts investment income up to the level of the Sparer-Pauschbetrag of EUR 1,000 from tax withholding. It applies only to investment income and is the simple solution for smaller accounts. The child, too, has a Freistellungsauftrag of its own.

The **NV-Bescheinigung** (Nichtveranlagungs-Bescheinigung, non-assessment certificate under § 44a Abs. 2 Satz 1 Nr. 2 EStG) goes further. It is applied for at the tax office using form NV 1 A, which also applies to minors; for the child, the legal representatives apply. The certificate is then presented to the bank, which thereafter pays the income gross, that is, without Abgeltungsteuer (German flat-rate withholding tax on investment income) at source. It shields not only the EUR 1,000 but income up to the full extent of the Grundfreibetrag headroom of about EUR 13,384. The NV-Bescheinigung is valid for up to three years and can be revoked at any time. It becomes worthwhile as soon as the investment income exceeds the EUR 1,000 of the Freistellungsauftrag but stays below the Grundfreibetrag headroom.

| Feature | Freistellungsauftrag | NV-Bescheinigung |
| --- | --- | --- |
| Where applied for | With the bank | At the tax office (form NV 1 A) |
| Shields up to | EUR 1,000 (Sparer-Pauschbetrag) | about EUR 13,384 (Grundfreibetrag headroom) |
| Applies to | Investment income only | All income |
| Validity | Open-ended, changeable at any time | Up to 3 years, revocable |

Tax-free is not the same as contribution-free in health insurance. The contribution-free Familienversicherung (family health-insurance cover) through one parent (§ 10 SGB V) ends when the child's total income exceeds about EUR 565 per month in 2026 (around EUR 6,780 per year), and investment income counts here. That is a different test from the about EUR 13,384 of the NV-Bescheinigung. Account income above about EUR 565 per month can endanger the contribution-free Familienversicherung and trigger contributions of its own, even where the income remains free of income tax. How the Sparer-Pauschbetrag is treated here is not conclusively settled. In case of doubt, clarify the threshold with the relevant health-insurance fund. Kindergeld (child benefit) is unaffected by this, since it has not been income-dependent since 2012.

## Choosing the right ETF

For a Kinderdepot with a long horizon, a broadly diversified, market-capitalisation-weighted equity ETF on the global market, of the MSCI World or FTSE All-World type for instance, is a common and conventional building block. That is a usual choice and not a recommendation; suitability depends on the family's goals and tolerance for risk. Returns are assumptions or historical values and never a promise. The long horizon lowers the probability of losses over time, but does not rule them out, and the capital remains exposed to risk.

One question that arises with particular force for the Kinderdepot is that of **accumulating or distributing**. Both variants receive the same Teilfreistellung of 30 percent and the same allowances; the difference is not a tax rate but an effort.

The child's own allowance applies each year on a use-it-or-lose-it basis. A **distributing** ETF fills the allowance passively, because the distributions arise on an ongoing basis; they can be reinvested by hand. An **accumulating** ETF defers taxation; only the small Vorabpauschale falls due each year, so that a large part of the allowance would go unused unless one actively sells and buys back shares towards the year's end. This approach is a recognised technique, but it costs spread and fees and is a liquidity and tax technique, not a return booster.

### Vorabpauschale 2026 (illustrative, not a forecast)

```text
Base yield = 70% × 3.20% = 2.24% of the value at the start of the year
```

The Vorabpauschale (§ 18 InvStG) is measured in 2026 against a Basiszins (base rate) of 3.20 percent. It is capped at the actual increase in value over the year, comes to zero where the fund has fallen, and is credited on a later sale. The Teilfreistellung of 30 percent applies to it as well.

With the Kinderdepot it is not the choice of fund that decides the outcome, but the patience to hold the wealth, over years, as the child's own.

## Junior Depot calculator

The calculator shows, by way of example, how regular payments can develop over a long period. The assumptions underlying it are neither a forecast nor a promise; actual results depend on market performance, costs and taxes.

## Checklist: opening a Junior Depot

The following steps summarise the path from opening to the age of majority.

1. Open the account in the child's name; do not save alongside it in your own account.
2. Register the child's own Freistellungsauftrag with the bank (up to EUR 1,000).
3. Consider an NV-Bescheinigung (form NV 1 A) with the tax office as soon as the investment income goes beyond EUR 1,000.
4. Keep the Familienversicherung threshold in view (about EUR 565 per month in 2026) and, in case of doubt, clarify it with the health-insurance fund.
5. Choose the investment building block deliberately and understand accumulating or distributing as a question of effort.
6. Stay mindful that the account belongs, in law, to the child and passes fully into its control at 18.

This article explains how Junior Depots work and the allowances that apply. It is no substitute for individual tax or legal advice. For larger gifts, the question of attributing income, or unclear points around the Familienversicherung, you should consult a tax adviser, for gift contracts where relevant a notary, and for health insurance your health-insurance fund.

## Frequently asked questions

### What is a Junior Depot?

A Junior Depot, also called a Kinderdepot (children's securities account), is a securities account held in the name of a minor child and belonging, in law, to the child. Both parents with custody manage it together as legal representatives, on a fiduciary basis in the child's interest (§ 1629 BGB). Payments in are gifts to the child and in principle irrevocable. At 18 the account passes fully into the child's free control.

### How much is tax-free in a Junior Depot?

In 2026 a child can receive around EUR 13,384 in investment income tax-free, provided this is the child's only taxable income. The figure combines the Grundfreibetrag (basic tax-free allowance) of EUR 12,348 (§ 32a EStG), the Sparer-Pauschbetrag (saver's lump-sum allowance) of EUR 1,000 (§ 20 Abs. 9 EStG) and the Sonderausgaben-Pauschbetrag (special-expenses lump sum) of EUR 36 (§ 10c EStG). In practice this runs through a Freistellungsauftrag (exemption order) at the bank and, beyond that, an NV-Bescheinigung (non-assessment certificate).

### Can parents withdraw money from a Junior Depot?

No, not for their own purposes. The money in a Junior Depot belongs in law to the child; parents manage it on a fiduciary basis and may use it neither for themselves nor for ordinary maintenance. If they treat the account as their own wealth, the tax office can attribute the investment income to them (abuse of structuring under § 42 AO). A right to reclaim exists only within the narrow limits of § 530 BGB.

## Sources

- [BGB § 1629 Vertretung des Kindes](https://www.gesetze-im-internet.de/bgb/__1629.html) · Bundesministerium der Justiz
- [EStG § 32a Einkommensteuertarif (Grundfreibetrag)](https://www.gesetze-im-internet.de/estg/__32a.html) · Bundesministerium der Justiz
- [EStG § 44a Abstandnahme vom Steuerabzug (NV-Bescheinigung, Freistellungsauftrag)](https://www.gesetze-im-internet.de/estg/__44a.html) · Bundesministerium der Justiz
- [ErbStG § 16 Freibeträge](https://www.gesetze-im-internet.de/erbstg_1974/__16.html) · Bundesministerium der Justiz
- [SGB V § 10 Familienversicherung](https://www.gesetze-im-internet.de/sgb_5/__10.html) · Bundesministerium der Justiz