• Parents can now open Kids’ accounts and choose from two options: creating a portfolio themselves from ETFs, stocks, and more in Scalable Broker, or using the digital wealth management service Scalable Wealth, an all-round service handling portfolio creation, ETF selection, ongoing monitoring, and tax optimisation.
  
• Scalable Pocket Money: children are refunded ongoing fees (TER) for 200 ETFs in Broker. In Wealth, management fees are waived.
• Tax-free investing with Kids’ accounts: in Germany, children can utilise the Saver’s Allowance (Sparer-Pauschbetrag), Basic Tax-Free Allowance (Grundfreibetrag ), and Special Expenses Allowance (Sonderausgaben-Pauschbetrag) to realise up to 13,132 euros tax-free. This allows for annual tax savings of up to 3,676 euros.
• In Broker, Kids’ accounts benefit from the ECB deposit rate of 2% p.a. (variable) on unlimited PRIME+ cash balances and on FREE cash balances up to 100,000 euros.

Munich, 23 October 2025 – Scalable Capital's Kids’ accounts empower parents to secure their children’s financial future from an early age. Parents have two options: opening a Kid’s account in Scalable Broker or in the digital wealth management service Scalable Wealth. Children benefit from tax advantages, savings plans from 1 euro, and “Scalable Pocket Money,” with fees (TER) refunded for 200 ETFs in Scalable Broker. Setting up a monthly savings plan of 50 euros in a Kid’s account can therefore mean approximately 20,000 euros extra by time of retirement due to compound interest. In the digital wealth management service Scalable Wealth, children benefit from a waiver of management fees, which, with the same savings rate, can even result in approximately 55,000 euros more in total wealth by the time of retirement.[1] Scalable Wealth offers parents an all-round service with an automated ETF portfolio for their children. Additionally, the Scalable Broker facilitates cost-effective trading of ETFs, shares, and funds, while also offering the current ECB deposit rate of 2% p.a. (variable).

“We make investing simple and affordable. With our new Kids' accounts, this now also applies to the youngest in society. Whether in Broker or in Wealth – parents can lay the foundation for long-term wealth accumulation for their children from a young age and maximise the effects of compound interest”, says Erik Podzuweit, Founder and Co-CEO of Scalable Capital. “With demographic change, the pension formula no longer adds up: more pensioners and fewer rate payers means a higher tax burden for us all. Private pension planning is therefore not a luxury; it’s a necessity. With fee-free ETF savings plans from as little as 1 euro and Scalable Pocket Money, we ensure that children can benefit from the advantages of long-term capital investment from an early age”, Podzuweit continues.

Scalable Broker: Invest in 200 products without ongoing ETF fees

In Broker, Scalable Capital now pays “Scalable Pocket Money” to kids, covering the ongoing fees (TER) for 200 ETFs, 100 each from iShares by BlackRock and Xtrackers, the ETF division of DWS, including the Scalable All Country World ETF.

In addition, all Scalable Broker benefits also apply to Kids’ accounts: savings plans without order fees from as little as 1 euro on all ETFs and 3,000 stocks, and cost-effective trading of ETFs, stocks, and funds. Scalable Capital also pays the current ECB deposit rate of 2% p.a. (variable) on balances in Kids’ accounts in PRIME+ on unlimited amounts and in FREE up to 100,000 euros. PRIME+ balances are held with Scalable Capital Bank and several partner banks. The cash balance distribution takes into account the balance held by Scalable Capital at the respective bank, the respective statutory deposit guarantee of 100,000 euros per client and bank, and any additional guarantee schemes.

Scalable Wealth: Automatic investing and zero management fees in an all-round service

The digital wealth management service Scalable Wealth is an all-round solution designed to help parents and save them time. Scalable Capital manages portfolio creation, ETF selection, ongoing monitoring, and tax optimisation. Furthermore, with Scalable Pocket Money, the regular management fees are set to 0% until the child's 18th birthday. This waiver leaves even more funds for parents to invest and save for their children.

In Germany, Scalable Wealth also automatically maximises the Saver’s Allowance (Sparer-Pauschbetrag) without additional fees as part of the annual tax optimisation. At the end of the year, Scalable Wealth assesses potential for further tax optimisation and automatically adjusts the ETF portfolio if necessary. Combined with free management, tax-efficient and ETF-based wealth accumulation becomes child’s play and is made accessible to a broad segment of the population for the first time in this form. A further plus point: deposits are automatically invested like savings plans; a separate order placement is not required.

All details on Scalable Pocket Money and the included ETFs can be found here.

Tax-free investing with Kids’ accounts

In Germany, children under 18 years of age generally do not pay taxes on typical investment amounts. The sum of the Saver’s Allowance (Sparer-Pauschbetrag, 1,000 euros), Basic Tax-Free Allowance (Grundfreibetrag, 12,096 euros), and Special Expenses Allowance (Sonderausgaben-Pauschbetrag, 36 euros) allows for up to 13,132 euros to be earned tax-free per year. This means children can save up to 3,676 euros in taxes annually.[2]

This is easiest with a tax exemption order (Freistellungsauftrag) or a non-assessment certificate (NV-Bescheinigung), which can conveniently be filed digitally. Scalable Wealth automatically optimises the use of the Saver’s Allowance. In Scalable Broker, parents can do this independently for their children. For larger investment amounts, parents should check whether the child’s capital income could affect social benefits such as family health insurance (tax-free limit of 6,420 euros plus Saver’s Allowance of 1,000 euros per year) or student support (BAföG).

Account opening in minutes

Clients can open an account in their children’s names in a few minutes. They can easily view both their own accounts and the Kids’ accounts via their existing login. Accounts are opened for free and entirely digitally, making deposits via SEPA instant transfer and the set-up of savings plans immediately possible. Legally, the account is owned by the child but managed by the parents. Upon reaching adulthood, access automatically transfers from the parents to the child.

Harness the power of compound interest from an early age

Given a shift in the ratio of contributors to pensioners, according to the German Federal Pension Fund (DRV), the statutory pension will rise more slowly, and the taxable portion for contributors will increase, making private pension planning very important.[3] The pension gap for average earners can amount to up to one million euros, calculations by the consumer portal Finanztip show.[4] The earlier wealth accumulation begins, the more effective the compound interest effect. The MSCI World showed an average annual return of 7.7% p.a. between 1970 and the end of 2024. This means that even with small savings rates, considerable sums can be achieved. Anyone who invests 50 euros monthly for a child from birth with an assumed return of 7.7% and ETF fees of 0.2% p.a. could reach approximately 23,000 euros by adulthood and over 892,000 euros by retirement, even though only 10,800 euros were actually invested. With Scalable Pocket Money, which refunds ongoing ETF fees in Broker, almost 912,000 euros would be possible by adulthood.

Boosting youth participation in the capital markets via “Early Start Pension”

In this regard, the efforts of the German government to maintain the start date of the “Early Start Pension” (Frühstart-Rente) for 1st January 2026 are to be welcomed. The planned state subsidy of 10 euros per month for children between 6 and 18 years of age is a step in the right direction to get young people investing in the capital markets. It is therefore essential to adhere to the agreed private-sector solution. Collectivisation is conceivable only for uncalled funds, to make them available in later years if parents have not taken action, without burdening future budgets.

In addition, Scalable Capital is launching selected content for parents, alongside its usual broad universe of financial education offerings. For all further questions about Kids’ accounts, customer service can be reached by email and phone.

[1] The calculation is based on the following assumptions: ETF fees of 0.2% p.a. in the Scalable Broker, or the asset management fee of 0.75% p.a. in Scalable Wealth. Retirement at 67 years of age. The assumed return is the average value of 7.7% p.a., which the global stock index MSCI World achieved between 1970 and the end of 2024.
[2] Capital gains tax (Kapitalertragsteuer) plus solidarity surcharge (Solidaritätszuschlag) and church tax (Kirchensteuer).
[3] ‌‌‌‌‌https://www.deutsche-rentenversicherung.de/SharedDocs/Downloads/DE/Broschueren/national/altersvorsorge_heute_die_zukunft_planen.pdf
[4] ‌‌ https://www.finanztip.de/presse/finanztip-berechnung-lebenslange-rentenluecke-kann-auf-eine-million-euro-steigen-viele-besorgt-um-finanzielle-zukunft/

About Scalable Capital

Scalable Capital is a leading digital investment and banking platform with a full banking licence, empowering people across Europe to shape their own finances. Scalable Broker makes it easy and affordable for clients to invest professionally in stocks, ETFs, cryptocurrencies, and derivatives, as well as set up savings plans. Scalable Wealth, the digital wealth management service, offers clients professional investment in ETF portfolios, and is also adopted as a white-label solution by banks and other B2B partners. The company’s offerings are rounded off by attractive interest rates, loans, and private equity. With the European Investor Exchange, Scalable Capital offers an exchange specifically for retail investors. Over one million clients have already entrusted more than €30 billion to the platform.

Founded in 2014, Scalable Capital now employs over 700 people across Munich, Berlin, Vienna, Milan, and London. Together with the founding and management team, including Erik Podzuweit and Florian Prucker, they are working on a new generation of financial services.

Further information under: www.scalable.capital. A factsheet, photos and previous press releases are available in our Newsroom.

For press enquiries:

Ina Froehner
Scalable Capital
VP Communications & Public Affairs
+49.160.94.43.59.32
presse@scalable.capital