New savings program for children can reach €64,136 by age 18

A new government-backed savings and investment program for children aged up to two years could allow families to build a fund worth more than €64,000 by the time a child reaches adulthood, according to details presented by Greek Prime Minister Kyriakos Mitsotakis.

Known as the “Koubaras” program, the initiative is designed as a bank investment account rather than a conventional savings account. For every amount deposited by a parent, the state will provide a corresponding contribution, subject to an annual parental contribution limit of €1,200, or €100 per month.

Other family members, including grandparents and godparents, will also be able to contribute to the account.

Account locked until the child turns 18
The money will remain invested until the child reaches the age of 18. At that point, the account will be unlocked and the accumulated funds will be transferred to the beneficiary, with the proceeds reportedly exempt from income tax under the terms presented for the program.

The €1,200 annual contribution limit is also expected to be adjusted upward by 10% every five years, allowing the potential amount accumulated over time to increase.

Because the “Koubaras” is an investment account rather than a simple deposit account, participants will reportedly be able to choose among different investment products, ranging from more conservative to higher-risk options.

The examples presented during the program's announcement assumed an indicative average annual return of 3%.

What happens if monthly contributions are missed?
Parents will not be required to maintain their chosen monthly contribution every month. However, if a parent stops making payments for a particular period, the corresponding state contribution will also not be made for those months.

The account will nevertheless remain subject to the age-18 limit. In other words, missed contributions will not extend the duration of the program beyond the child's 18th birthday.

How much could families accumulate?
The examples presented illustrate the potential impact of regular contributions and investment returns.

A parent contributing €10 per month, combined with the corresponding state contribution and an indicative average return of 3%, could accumulate approximately €6,414 by the child's 18th birthday.

At the maximum contribution level of €100 per month from the parent, matched by the state, the accumulated amount could reach approximately €64,136 by adulthood. This estimate takes into account the indicative investment return and the planned adjustment of contributions over time.

The figures are illustrative rather than guaranteed and would depend on the actual performance of the investment products selected.

Early withdrawal allowed only in exceptional circumstances
The funds cannot be freely withdrawn before the child turns 18. According to the program's presentation, early access would only be possible in an exceptional and demonstrable emergency affecting the family.

Another notable feature is that there are reportedly no income criteria for participation.

The program is intended for children aged up to two years, with parents required to open the account while the child remains within the specified age limit.

The initiative is intended to combine state support with long-term investment, potentially giving families a way to build a substantial financial reserve for their children by the time they reach adulthood.