Sparplan for a minor with US citizenship

[Felceazzurra]

Hello,

my son was born in the US and has double IT-USA citizenship. We have been living in Germany since 2016. I am now trying to open a Sparplan for him, but so far without success. Many brokers/bank clearly state that they do not accept clients with US citizenship. ING made me fill several forms and then nothing. So far I only found BNP Paribas through a third party service, but the transactions fees are higher than average. Does anyone have a successful story to share?

Thanks in advance.

Giovanni

[kaffeemitmilch]

By BNP you mean Consorsbank? Are the fees higher? Hmm. Kinda out of luck if nobody accepts you. I read somewhere that banks in Luxembourg are more amenable to dealing with US citizens.

[Franklan]

You might want to look at the following thread to understand what the actual problem is...

Information about FACTA

[Krieg]

Do you plan to keep big amounts in your son's account? Revolut allows to open a kid account attached to a parent account very easily. But the main holder of the account is the parent. The kid gets a credit card. Transfers between the parent and kid account are instant. You can program weekly or monthly transfers to your kid account. The downsides are that in Germany the kid can't use phone payments or kid-to-kid transfers until they are 16 y/o. And the maximum amount you can keep in the kid account is 6000 EUR. I am not sure about limitations for the kid account, not sure if they have to fulfill FACTA requirements because technically the account belongs to the parent. But as I said, that I don't know.

[Felceazzurra]

By BNP you mean Consorsbank? Are the fees higher? Hmm. Kinda out of luck if nobody accepts you. I read somewhere that banks in Luxembourg are more amenable to dealing with US citizens.

It is not Consorbank, it is DAB BNP Paribas, German headquarters, and accepts clients only through intermediaries. I am looking for a German bank because I want the capital gain taxes to be handled by them.

[Felceazzurra]

Do you plan to keep big amounts in your son's account? Revolut allows to open a kid account attached to a parent account very easily. But the main holder of the account is the parent. The kid gets a credit card. Transfers between the parent and kid account are instant. You can program weekly or monthly transfers to your kid account. The downsides are that in Germany the kid can't use phone payments or kid-to-kid transfers until they are 16 y/o. And the maximum amount you can keep in the kid account is 6000 EUR. I am not sure about limitations for the kid account, not sure if they have to fulfill FACTA requirements because technically the account belongs to the parent. But as I said, that I don't know.

I am looking for a solution to save some money for my son and his future, not to make him spend it Basically I would like to set up an ETF Sparplan in his name where I contribute regularly. The idea is that when he is 18 he will have some money for his studies, his travels or whatever he will plan to do. If the account is in his name, that would simplify the tax return. To my knowledge this is not possible with Revolut.

[PandaMunich]

Try the comdirect Kinderdepot: https://www-bild-de.translate.goog/trad ... r_pto=wapp

I've got a client with US citizenship at comdirect, so your son's citizenship will not be a problem.

[Felceazzurra]

Try the comdirect Kinderdepot: https://www-bild-de.translate.goog/trad ... r_pto=wapp

I've got a client with US citizenship at comdirect, so your son's citizenship will not be a problem.

Thank you PandaMunich.
I will give it a try.

[kaffeemitmilch]

By BNP you mean Consorsbank? Are the fees higher? Hmm. Kinda out of luck if nobody accepts you. I read somewhere that banks in Luxembourg are more amenable to dealing with US citizens.

It is not Consorbank, it is DAB BNP Paribas, German headquarters, and accepts clients only through intermediaries. I am looking for a German bank because I want the capital gain taxes to be handled by them.

Consorsbank is headquartered in Nuermberg. They deal with all the taxes in my Depot. I haven't had to.

[Felceazzurra]

Hi,

I just wanted to leave here an update on my endeavour, in case it can help others.
After not being able to open a JuniorDepot with ING, I followed the suggestion here to try Comdirect. The experience was sub-optimal at best.
I applied online and received all the paperwork to fill out by mail, which I did. Then my wife and I were asked to proceed with Postident: mine went smoothly, but my wife had to try PostIdent three times and VideoIdent once before it went through. Each time, after 10 days, we received a letter saying the process was unsuccessful. We called support several times and they were unable to explain why she had to repeat the process.
Now it is the end of October and we get all the information to log into the new account. But it is not over yet. We receive additional requests by mail for our Italian social security numbers, which we provide, and then for the W9 form, which we fill out and send back. Then they send us a request for the W8en form, which makes no sense because it clearly states that it does not apply to US citizens, like my son.
In the meantime, when I try to make an order on the platform, the operation is invalidated with the message that these operations are not enabled for US citizens. Today, after receiving no response to two requests for clarification sent two weeks ago, I decided to close the account. Based on my experience so far, I don't feel comfortable using their services.
My goal for this year to open a JuniorDepot for my son didn't happen. Next year I may try Consorbank, let's see.