How to Invest for Your Children in France: The Complete 2026 Guide
Want to build a financial future for your child but don't know where to start? Minor securities account, life insurance, PER — here's an honest comparison of every option available in France, with real projections to age 18.
Why starting early makes all the difference
| Start age | Monthly | Capital at 18 (7%/yr) | Total contributed |
|---|---|---|---|
| At birth | €50 | €30,400 | €10,800 |
| At birth | €100 | €60,800 | €21,600 |
| Age 5 | €100 | €38,700 | €15,600 |
| Age 10 | €100 | €20,300 | €9,600 |
| Age 15 | €100 | €7,200 | €3,600 |
A 5-year delay halves the final capital. Start now, even with €30/month.
The 3 main options in France
1. Minor securities account (CTO for minors)
A minor can hold a securities account managed by their legal guardians until age 18. Most flexible option for direct ETF exposure.
- Pros: access to all ETFs, stocks, funds. No deposit limit. Zero annual management fees at modern brokers.
- Cons: no tax-advantaged envelope — capital gains and dividends taxed at PFU (31,4%) on each sale. Minor's income is added to parents' tax return.
- Compatible brokers: Bourse Direct, Fortuneo, Saxo Bank (not Trade Republic or BoursoBank for minors).
2. Life insurance (assurance-vie) in the child's name
The recommended solution for 80% of parents. The child is both subscriber and beneficiary. Parents manage contributions until age 18.
- Pros: reduced taxation after 8 years (€4,600/yr exemption on gains). Access to ETFs as unit-linked funds. Simplified estate transfer. Capital available at any time.
- Cons: annual management fees (0.5% to 0.8%/yr on the best contracts). More limited ETF selection than a CTO.
- Recommended contracts: Linxea Avenir 2, Boursorama Vie, Lucya Cardif (ETF available, fees ≤ 0.6%/yr).
3. PER (Retirement Savings Plan) in child's name
Parents can deduct contributions from taxable income (up to 10% of PASS). Capital locked until the child's retirement (with exceptions: first home purchase, disability...).
- For: parents in 30%+ tax bracket who want to prepare their child's retirement and won't need the funds for 40+ years.
Comparison summary
| Option | Taxation | Flexibility | Annual fees | Best for |
|---|---|---|---|---|
| Minor CTO | PFU 31,4% | Maximum | €0 (online brokers) | Low-tax parents / broad ETFs |
| Life insurance | Reduced after 8 yrs | Good | 0.5–0.8%/yr | Most families |
| PER child | Deductible contributions | Low (locked) | 0.5–1%/yr | Parents TMI 30%+ |
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Start for free →FAQ
Can a minor hold a PEA in France?
No. The PEA is reserved for adults (18+). The alternative for exposing a child to equities is the minor securities account (CTO) opened in the child's name, managed by legal guardians. At 18, the child can open their own PEA — if you've built capital via CTO/life insurance, they can use it as seed money.
What happens to the investments at age 18?
The child takes full control of their assets. Life insurance opened at birth will already have 18 years of tax seniority — the 8-year tax advantage is long surpassed. The best move is usually to keep it invested and open a PEA on top for the next investment phase.