Savings for Child's Future

Doctor... architect... banker... my child!?

Higher education in Latvia may cost anywhere between 4000 and 73 000 euros. We encourage helping fulfil the dream about the child's future by taking care of savings for the child in good time. Start saving for the future of your child today and avail yourself of the following advantages:

  • a guaranteed amount at the end of the contract - the child will receive the accrued funds irrespective of the situation in financial markets. Read more
  • tax relief - an opportunity to receive a personal income tax refund on annual basis from the state. Read more
  • financial safety - the policyholder's life is insured for the duration of savings. Read more
The contract can be set up until the child's 18th, 19th, 20th, or 21st birthday. The minimum duration of the contract is 5 years.
The policyholder can be the child's mother, father or other person - godparents, aunts and uncles.

Savings for Child's Future Calculator

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  • Investment strategy matching contract duration
    The money paid into savings is professionally, responsibly and caringly managed by Swedbank's team of professionals that will, in selection of investment targets, take into account the time remaining before the contract runs out. Read more
  • Hassle-free payments
    The insurance premium payments are debited automatically once a month from an account specified by the customer. Also, one-off contributions may be made at any time on top on regular contributions towards savings. Contributions may be made by any person who wishes to help create savings for the child.
  • Keeping track of savings easily via Internet Banking
    You'll be able to easily check out your savings at any time on the Internet Banking site, as well as making any alternations to the contract if necessary.
  • What should I do if I want to suspend regular contributions to savings?

    Regular contributions to savings can be suspended via the Internet Banking by opening one's savings contract. To do so, log on to Internet Banking and go to section “Investments, savings, pensions”, then select “Life insurance” and then go to “My contracts”. After that, click on the contract number to open the contract. Click on the “Modifications” tab and select the “Change of payments mode” from the pop-up menu. If you suspend regular contributions, you can add any amount of funds to the Savings for Child's Future at any time.
  • What should I pay attention to during the Savings for Child's Future contract?

    The most important thing to keep an eye on it that the amount of your contributions towards child's savings matches your goals. Make sure that the saved amount is sufficient, for example, for the child to get the desired level of education. When you have estimated the amount of money necessary to achieve this goal, you can calculate the appropriate amount of monthly payments.
  • Can I terminate the contract and what are the consequences?

    The Savings for Child's Future contract can be terminated at the branches of the bank. In case of termination of the contract, you will have to pay a fee at the rate of 1% of the savings (but in any event not less than 21.34 EUR). The fee will not be charged if the child has reached 18 years of age and the contract has been in force for at least 5 years. In case of early termination of the contract the actual value of savings is paid, i.e., the guaranteed-amount condition will not be valid.
  • When does the guaranteed-amount condition apply?

    Investing in financial instruments opens opportunities for higher profit according to the financial market situation. If the value of financial instruments has dropped at the end of the contract, the guaranteed amount will be paid. The guaranteed-amount condition does not apply in case of early termination of contract.
  • How is indemnity paid out at contract maturity?

    When the savings contract runs out, the child for whom the savings were created submits an application for withdrawal of savings in internet-bank or in any Swedbank branch, presents the passport. The insurance company pays the child the actual amount savings ('the reserve') or the guaranteed amount, depending on which one is larger.
  • In case of death of the contractor

    In case of death of the contractor the insurance amount is added to the savings (insurance amount is used to purchase investment units according to the order indicated in the price list). The insurance amount at the moment of calculation is equal to the amount of the current monthly regular supplement (which cannot exceed the maximal monthly risk amount indicated in the price list) multiplied by the number of full months left to the end of agreement term. In case of death of the contractor the increase amount cannot be lower than 2% of the savings amount.
  • Information about Personal Income Tax on Capital

    The amended Law on Personal Income Tax imposes a tax on income earned by individuals from capital. The tax rate is 10 % of the income. Income from life insurance policies with savings arises when the difference between cash surrender value (in case of early termination of insurance contract) or the sum paid upon maturity of the insurance contract and the insurance premiums paid is positive. The tax will automatically be withheld by the insurer on the day of earning the income i.e. when the interest is paid out, and transferred to the government budget.

Other advantages