From next year, children could get a dedicated 'coming-of-age' investment account

The Saeima will vote in its third and final reading on a package of bills, part of a wider reform overseeing non-bank lenders, that introduces a new financial product for children called the 'coming-of-age investment account'. The relevant provision is set to take effect on 30 April 2027.

A long-term savings account for children

The account would combine a cash account and a linked financial-instruments account opened in a minor's name, intended for building long-term savings until the child turns 18. Banks or investment brokerage firms could open it regardless of the child's age, and all assets held in it would legally belong to the child. Until adulthood, one parent or another legal guardian would issue instructions on the account's behalf and could also sign a portfolio management agreement with the provider.

Without needing court (orphan's court) approval, guardians could deposit funds, buy and sell financial instruments, collect dividends and interest, and reinvest proceeds. Allowed investments include securities listed on regulated markets, money-market instruments, and funds aimed at retail investors, while riskier products such as derivatives and leveraged trades would be banned. Withdrawing funds, closing the account, or transferring assets out before the child turns 18 would require court approval, and the account could not be used to cover debts or obligations of the parents or other parties.

Easier everyday banking for minors

Alongside the new account, the reform would simplify routine banking for children. Until age 16, a single parent — rather than both — could open and manage a regular payment account for a child, including issuing a card linked to a parent's account. From age 16, a young person could sign a payment account agreement independently and manage their own funds, while parents would retain only the right to view balances and transactions, not to issue payment orders.

The Finance Ministry says the absence of unified rules currently leads banks to avoid offering such accounts to children or to restrict them heavily. The proposals were drafted with the Justice Ministry, the Bank of Latvia, and the financial sector association, fulfilling a government commitment to allow investment accounts for children from age one.