3 Tips on How to Choose the Most Advantageous Savings for Children? Buying a starter flat, getting a first car, commuting, paying for housing, study materials and tuition. These are the costs your child will likely face when entering the adult world. You have the power, through your responsible decision, to help your child launch a career and make a successful start into adulthood. The foundation of success is a solid financial footing. Do you know what options are available?
Short answer. There is no single best product for all children; a combination makes sense depending on when the child will need the money. Building savings (stavební spoření) and pension savings add state support, but they lock up funds for years. A savings account offers quick access to money, and regular fund investments over a 15-to-18-year horizon offer the chance of higher returns, at the cost of value fluctuations.
Which savings to choose for children?
The financial market is constantly changing, which fundamentally affects the operating conditions of various financial products. Alongside familiar products such as savings accounts, building savings (stavební spoření), government bonds, term deposits, and life insurance with an investment component, new savings options are emerging. One of them is saving in silver and gold, alternative investments, and supplementary pension savings (doplňkové penzijní spoření, DPS) for children.
Every parent must carefully consider the benefits of individual products and select the optimal one for their child. Ideally, you can build an investment portfolio for your child from childhood and teach them to benefit from each product. In addition to capital appreciation, building savings (stavební spoření) and supplementary pension savings (doplňkové penzijní spoření, DPS) also provide capped state support.
Comparison of children’s savings by support, accessibility and risk
Four common ways to save for children differ in how much the state contributes, when the child can access the money, and how much its value can fluctuate. The table summarises the rules valid as of 3 October 2026; interest rates and fees of specific banks and funds are not included.
| Savings method | State support | When the money is available | Risk |
|---|---|---|---|
| Building savings (stavební spoření) | 5% of deposits up to 20,000 CZK (about 920 USD) per year, maximum 1,000 CZK (about 46 USD) (Section 10 of Act No. 96/1993 Coll.) | with state support after 6 years from signing the contract | deposit is insured like on a savings account, interest rate is agreed in the contract |
| Pension savings | 20% of the monthly deposit between 500 and 1,699 CZK (about 78 USD), fixed 340 CZK (about 16 USD) from 1,700 CZK (about 78 USD) | up to one-third of own funds on request within 2 years of the 18th birthday, provided savings lasted 120 months, the remainder from age 60 | fund value fluctuates according to the chosen strategy |
| Savings account | none | anytime according to bank terms | deposit is insured up to 100,000 EUR, interest may not keep up with inflation |
| Mutual funds and ETFs | none | anytime, but the value may happen to be low | value fluctuation, substantial for equity funds |
The products can be combined because each covers a different horizon. For studies in 15 to 18 years, investments are suitable, while from pension savings only one-third of own funds can be used. For a first home, building savings (stavební spoření) with the option of a building savings loan is ideal, and for minor expenses, a savings account works best. Anyone claiming the child tax credit can send part of it straight into savings; the amount and conditions are summarised in the article Child Tax Credit.
The government amendment Better Pension Savings (Lepší penzijko) proposes increasing the state contribution to 40% of the deposit for savers under 30 starting from 2027. For children under 18, the state would contribute from a deposit of just 100 CZK (about 4.6 USD) per month, and one-third of own deposits and their returns could be withdrawn once after ten years of saving up until the 36th birthday. This is currently only a proposal; Chamber print 285 passed its first reading on 24 September 2026.
Building savings (stavební spoření) for children
Most of you are already well familiar with this type of savings, and many can also share their experience of taking out a bridging or standard loan. You can also open building savings (stavební spoření) for your children. It works on a similar principle to the product designed for adults.
The lock-in period is at least six years to become entitled to state support. However, regular fees are associated with opening and maintaining it. But if you wish to terminate the child’s contract earlier than after six years, you generally need the consent of a guardianship court; details can be found below in the section on who is permitted to manage the child’s money.
At the beginning of 2022, when this article was written, building societies pleased clients with a slight increase in interest rates, but unfortunately it was not enough to cover the rising inflation at the time (around 6%). Contracts for children are also provided by most building societies with no entry fee.
Tip: Also read our article on investing: 3 Tips on What to Invest Small Amounts into Regularly or take a look straight away at our investment guide.
Building societies active in our market and their comparison
At the beginning of 2022, a total of five building societies out of the original six were active in our market. At that time, they offered the conditions listed below, which still factored in state support of 10% of deposits; therefore, check the current conditions with individual building societies.
- Moneta stavební spořitelna, building savings (stavební spoření) for children and young people Kamarád (you can open it without a fee, it guarantees you an interest of 1.5%, a return of up to 4.83%).
- Raiffeisen stavební spořitelna, a.s. offers you the option to open an account for free with a target amount from 200,000 CZK (about 9,200 USD) with a guaranteed interest of 1.5%. In combination with opening a smart personal account (run for free), you can also get a bonus of 2,000 CZK (about 92 USD) and achieve a total return of up to 4.76%.
- Stavební spořitelna České spořitelny (Buřinka). Until 31 December 2021, you could get a bonus of 2,000 CZK (about 92 USD) for opening a contract, which you can also easily arrange online. The building society offers you a deposit return of up to an amount of 4.3% per annum (state support + yield of 1.5%).
- Stavební spořitelna Komerční banky (Modrá pyramida), the Moudré spoření tariff can be arranged without an entry fee, with an interest of 1.5% and a total yield of 4.23%.
- ČSOB stavební spořitelna (Liška), the Aktiv Plus savings tariff is intended for children and youth. ČSOB stavební spořitelna will evaluate your deposited funds with an interest rate of up to 4.1% with the option of opening an account for free with a target amount of up to 500,000 CZK (about 23,000 USD).
Fee-free building savings (stavební spoření) for children
Building societies generally charge a fixed fee of 1% of the target amount for opening a building savings account. Therefore, choose the target amount thoughtfully so that the building society does not terminate your contract due to exceeding the target amount, or so that you are not overburdened by the entry fee.
Keep an eye on promotions by individual building societies (usually before the end of the calendar year), when you as new clients have the opportunity to open a building savings account free of charge and also secure another attractive bonus.
Tip: Also pay attention to the article: How Best to Invest Money in Times of Rising Inflation?
Supplementary pension savings (doplňkové penzijní spoření, DPS) for children
You can set up this type of savings product for your children from birth. To set it up, all you need is a birth certificate or your child’s identity card. The amount saved depends on your current financial situation, and you can change it continuously.
During the savings period, after consulting with a financial advisor, accumulated funds can be transferred to another fund and contributions into the new fund can continue.
Supplementary pension savings (doplňkové penzijní spoření, DPS) was established in 2013 as a transformed product from supplementary pension insurance (penzijní připojištění). Supplementary pension insurance was originally intended to serve as a complementary tool for maintaining your standard of living in retirement.
As clients, you could only take it out from the age of 18, and to withdraw the funds you had to meet the requirement of saving for 60 months and reaching the age of 60. Failure to meet these conditions automatically voided entitlement to any credited state support.
Today, the situation is different. For your children, supplementary pension savings (doplňkové penzijní spoření, DPS) allows the withdrawal of 1/3 of the saved funds within 2 years of their 18th birthday, provided they have been saving for at least 120 months. They can use the money for studies, to secure a bridging loan, or to start their own business.
Advantages of supplementary pension savings (doplňkové penzijní spoření, DPS)
- There is no fee for opening the contract or maintaining the account. However, the pension company charges a fee from fund assets of no more than 1% per annum (0.4% for the mandatory conservative fund) and at most 15% of returns (10% for the mandatory conservative fund), as laid down in Section 60 of Act No. 427/2011 Coll.
- For a deposit from 500 CZK (about 23 USD) per month, your child will receive a state contribution of 20%, up to a maximum of 340 CZK (about 16 USD) for a deposit from 1,700 CZK (about 78 USD).
- If they save for at least 120 months, your child can withdraw up to 1/3 of the accumulated funds within 2 years of their 18th birthday. State contributions are not included in this; they remain in the account and the savings continue.
- If the contract is cancelled or the binding conditions are not met, your child only loses the state support. They keep their own contribution and appreciation, but will only receive it as a surrender value (odbytné) after a savings period of at least 24 months. For a shorter period, the funds can only be transferred to another pension company (Section 25(1)(a) and Section 27 of Act No. 427/2011 Coll.).
- The option to choose investment risk (conservative, ethical, balanced, dynamic fund) and the subsequent appreciation of financial funds.
Disadvantages of supplementary pension savings (doplňkové penzijní spoření, DPS)
- Financial funds are locked until the age of 60
Who is allowed to handle the child’s savings money
Money in a contract or account in the child’s name belongs to the child, even if parents or grandparents send it there. Parents manage it as their legal representatives and, under Section 896 of the Civil Code, must handle it as prudent managers. Money that the child does not currently need should be deposited safely.
For legal acts regarding a child’s assets that are not an everyday matter, parents need court approval (Section 898 of the Civil Code). However, both the Building Savings Act and the Supplementary Pension Savings Act explicitly state that entering into and amending a contract for a minor is an everyday matter (Section 5(12) of Act No. 96/1993 Coll., Section 5(8) of Act No. 427/2011 Coll.).
Terminating a child’s building savings (stavební spoření) after six years is also an everyday matter. Court approval is only required if any of the legal representatives disagree (Section 5(13) of Act No. 96/1993 Coll.). For other contracts, court approval is always required if they bind the child to recurring payments for more than three years or even after they reach adulthood (Section 898(2) of the Civil Code). From the age of 18, the child decides on their money independently.
Savings for children with state subsidies combined with investment in shares
If you are interested in saving for your children in a suitable way, do not be afraid of a combination of proven products. Building savings (stavební spoření) is advantageous up to 20,000 CZK (about 920 USD) per year, supplementary pension savings (doplňkové penzijní spoření, DPS) up to 1,700 CZK (about 78 USD) per month. Saving more into these products makes no sense for you. You will not get a state subsidy on higher amounts and your child cannot claim tax deductions for now. The return is also not the best in the long run.
What products should you choose then? Get your child a current account, which can be maintained free of charge up to the age of 26, and gradually teach them to manage money responsibly. In addition, it is relatively easy to open a savings account too.
At the beginning of 2022, Trinity Bank offered the most favorable interest rate on a savings account. Its account named Dobrý klient then appreciated the deposit at an interest rate of 3.08%, which was not fully sufficient to cover inflation at that time. Current interest rates on savings accounts need to be checked directly with the banks.
An interesting alternative that can bring more significant appreciation is a well-thought-out investment in shares. Are you a courageous or rather conservative investor? There is a suitable investment strategy for everyone. You can change it during the investment process.
Investing in bank shares, pharmaceutical companies, IT technologies, medical device manufacturing, and agricultural production can bring you a higher return, but there is no guarantee of yield.
Investment savings for children in the child’s name, or the parent’s
When you start saving for a child after birth, the money has 15 to 18 years until their adulthood. Regular investments in equity or mixed mutual funds and ETFs are suitable for such a horizon because market drops have time to recover during that period, although there is no guarantee. How funds work is explained in the article on collective investment, and the principle of regular purchases is described by the DCA method.
An account in the child’s name means that the money belongs to the child and the parents handle it according to the rules described above, including the obligation to treat it safely. Therefore, for riskier investments in the child’s name, check in advance whether court approval will be required. At age 18, the child receives the money under their own management.
When you invest in your own name, the money remains yours and you decide yourself when and how much to hand over to the child, perhaps for a specific expense. In an emergency, however, you can also use it differently, so savings for the child are held together only by your own discipline.
The sale of unit certificates (podílový list) or shares is exempt from tax if you hold them for longer than three years, or if the income from sales of securities does not exceed 100,000 CZK (about 4,600 USD) per year. Details are explained in the article on the time test (časový test) for shares and ETFs. Before signing, also compare fees, as both entry and annual fees reduce compound interest throughout the savings period.
USD amounts are approximate, converted at the Czech National Bank rate of 21.83 CZK per USD on 27 October 2026.
