Passbook Account
At KGK BANK the young savings account is a regulated and tax-exempt savings account, reserved for young people aged 3 to 25.
The opening of a youth booklet is reserved for natural persons. However, the youth booklet can be kept until December 31 following the holder’s 25th birthday.
It is only authorized to hold one young person’s booklet per person, it is however possible to combine the A booklet and the young booklet. KGK BANK proceeds directly to the opening of your passbook savings account as soon as your youth account is opened. Monthly transfers are provided by the Bank according to the conditions that you choose to establish in the contract. The passbook savings account is a joint account which is used to prepare your future as a student, friends also in case of immediate need. The funds that you choose to transfer according to the contract that has been provided are blocked by the bank. The release of funds is only done under certain conditions which will be presented in the contract.
Payments on the young booklet are free and cannot exceed 1 million dollars, and capped up to 20 million dollars. The ceiling can only be exceeded from the age of 16.
In the case of a minor under the age of 16, the legal representatives have power of attorney over the account. As soon as the holder reaches his 16th year, no power of attorney is possible on a young savings account, in order to protect the child’s savings. 16-year-old holders can make withdrawals alone unless their legal representative objects, while minors under 16 must have their authorization.
Bank interest is calculated per dozen. That is to say that the bank obtains 0.4% of your annual capital for the management of your accounts.
For the passbook account there is, in terms of banking regulations, no minimum capital to maintain in order not to see the young savings account closed. However, the passbook savings account must be maintained by monthly installments.
Taxation
As a general rule, the interests of the young savings book are net of tax, that is to say that they are exempt from income tax and social security contributions if the ceiling does not exceed $25,000 per year.
Contact us
Appointments are made by e-mail via your customer area, or in one of our offices with our advisers.