Advantages and disadvantages of a checking account for minors apply for a youth account for minor children or a checking account for students more and more parents. To live a responsible use of money young people, students and trainees is one of the most difficult tasks in the education and calls for parents, school and environment alike. What is there for reasons for a private checking account? On one hand it is practical. The allowance paid by the parents can be transferred directly and is the kids via EC card available. The lure of that money just to spend is when cash incomparably higher. Slow running close to normal Bank operations makes it also easier to prepare the, routine banking transactions necessary in a few years. Applying for a giro about the parents is practice and dangers for underage students. They have a power of Attorney even up to the age of 18.
The ownership is running, however, the name of the child. Before parents themselves to this step and a youth account for the child decide, should the students the basic concepts like bank transfer, direct debit and Dispozinsen are discusses in depth. Children under 7 years are not legal capacity until 7 years children are generally not contractually capable. You may complete any contracts, also no contracts. It is governed in the BGB 104. Who has not completed the age of 7, falls under this provision. An account can be opened for the children, access is restricted for the kids however.
It is in this case a pure children savings account. Children from 7-18 up to the age of majority are restricted legal capacity are necessary for contracts always the consent of parents or guardians. These are usually the parents or a guardian. These regulations can be read in the BGB 106. In connection with this law is the allowance clause of section 106, which contains an exception. Contracts of children shall be valid, should the money used for the kids at your disposal been left. This is the case with pocket money payments or the training fee. The use must be however age reasonably sensible part. Which is not the case, these shops are floating ineffective”, as long as until the parents do not expressly agree to this. What that means on a first checking account? Applying for a checking account for students from 7 years is possible. Parents must sign a power of attorney to do so. The limited legal capacity allows children access to the account via an ATM card as well as the benefits of banking services such as direct debit or bank transfer orders. An overdraft, an EC card with payment function or a credit card there but only at age 18 years and older. Prepaid credit cards on that before credit is charged are an exception. Capital gains tax traps for a giro account for student interest to, so these are also subject to tax. However, it is for the capital gains tax a tax allowance of 801 EUR / year. For the checking account or savings account of children is to submit a separate exemption order.