The Best Gift at Birth: Why CHF 10,000 Invested Beats Every Savings Account, Every Goldvreneli, and Every Toy
January 25, 2026
8 min read
The Best Gift at Birth: Why CHF 10,000 Invested Beats Every Savings Account, Every Goldvreneli, and Every Toy
A guide for grandparents, godparents, and anyone who wants to give something that actually grows.
When a baby is born, the gifts arrive. Plush toys. Onesies in sizes they'll outgrow in three weeks. A silver spoon nobody uses. A card with CHF 100 that vanishes into the nappy budget. And if you're lucky: a Goldvreneli from the grandparents, wrapped in tissue paper, destined for a drawer where it will sit — unchanged, ungrowing, forgotten — for the next 18 years.
There is a better way.
Not instead of the stuffed elephant (every baby needs one). But instead of the cash in the card, the fourth blanket, and the Goldvreneli that will be worth roughly the same in 2044 as it is today.
Invest it.
Goldvreneli (CHF 400)
~CHF 450
after 18 years (gold barely tracks inflation)
Savings Account (CHF 400)
~CHF 470
after 18 years at 1% interest
Invested (CHF 400)
~CHF 1,360
after 18 years at 7% return
Same CHF 400. Same 18 years. The Goldvreneli gains CHF 50. The savings account gains CHF 70. The invested amount gains CHF 960. And in Switzerland, that growth is completely tax-free.
The most generous gift isn't the biggest cheque. It's the one that had 18 years to compound.
What every gift amount becomes over 18 years
A single lump sum invested at birth at 7% average annual return, with no further contributions:
CHF 500
CHF 1,700
+CHF 1,200 growth
CHF 1,000
CHF 3,400
+CHF 2,400 growth
CHF 5,000
CHF 17,000
+CHF 12,000 growth
CHF 10,000
CHF 34,000
+CHF 24,000 growth
CHF 10,000 at birth becomes CHF 34,000 at age 18. The child receives three times what you gave — and you did nothing except start early. That's 18 years of compound interest working silently in the background, earning more every year because it earns on its own earnings.
And if you combine the lump sum with the parents' monthly savings plan:
| Your gift at birth | Parents add CHF 100/month | Value at age 18 |
|---|---|---|
| CHF 1,000 | + CHF 100/month for 18 years | CHF 49,400 |
| CHF 5,000 | + CHF 100/month for 18 years | CHF 63,000 |
| CHF 10,000 | + CHF 100/month for 18 years | CHF 80,000 |
| CHF 10,000 | + CHF 200/month for 18 years | CHF 126,000 |
Your CHF 10,000 gift is the engine. The parents' monthly CHF 100 is the fuel. Together: CHF 80,000 by the time that baby gets a driver's licence.
Calculate your exact scenario → arvy Investment Calculator
Why the savings account is the wrong choice for 18 years
We know — a savings account feels responsible. It's what your parents did. It's what the bank suggests. And for short-term goals (2–3 years), it's fine.
But for 18 years, it's a losing strategy:
| CHF 10,000 at birth | After 18 years | Real value (adjusted for 1.5% inflation) |
|---|---|---|
| Savings account (1%) | CHF 11,960 | CHF 9,150 (lost purchasing power) |
| Invested (7%) | CHF 34,000 | CHF 26,000 (massive real gain) |
The savings account doesn't just underperform — it actually loses purchasing power after inflation. Your CHF 10,000 is worth less in real terms after 18 years on a savings account than the day you deposited it. The invested version is worth 2.6x in real terms.
A savings account for 18 years isn't cautious. It's the most expensive choice you can make — because the cost is invisible. It's the CHF 22,000 your grandchild will never see.
The Goldvreneli myth
We love the tradition. A Goldvreneli in a small box, wrapped in tissue paper, handed over with ceremony. It's beautiful. It's Swiss. And financially, it's almost useless.
A 20 CHF Goldvreneli costs ~CHF 400 today. Gold has historically returned ~2–3% per year after inflation — roughly matching inflation, not beating it. In 18 years, your Goldvreneli will be worth ~CHF 450–550. Meanwhile, CHF 400 invested in equities becomes ~CHF 1,360.
The Goldvreneli is a symbol. The investment is a foundation. You can do both — buy the Vreneli for the emotional moment, and invest CHF 400 alongside it for the financial one. But if you can only do one: invest.
The modern Goldvreneli
Here's an idea: instead of a Goldvreneli, give the baby a symbolic share of one quality company — through the arvy savings plan. Not literally (arvy invests in ~30 companies), but conceptually: "I'm giving you a piece of Visa, LVMH, and Microsoft for your future." Emotionally, it's just as meaningful as a gold coin. Financially, it compounds at 7% instead of 2%. And when the child is 12, you can point to their phone and say: "Every time someone taps a Visa card, you earn a little bit." That's a story worth more than any coin.
For grandparents: How to make it happen
You want to invest for your grandchild. Here's the simplest path:
Option 1: Give the money to the parents (simplest)
Transfer CHF 1,000–10,000 to the parents' bank account with a note: "For [child's name]'s investment." The parents add it to their existing arvy savings plan (or start one). You're done. The parents manage it, you contributed the seed capital, and the child benefits from 18 years of compounding.
Tax: No gift tax between grandparents and grandchildren in most Swiss cantons. No documentation needed for typical amounts.
Option 2: Set up your own account (more control)
Open your own arvy savings plan earmarked for the grandchild. You invest, you control, you decide when to hand it over. This works well if you want to add CHF 50–100/month yourself over the years — birthdays, Christmas, special occasions.
Tax: You declare dividends and wealth in your own tax return. When you eventually gift it: no gift tax in most cantons.
Option 3: Contribute regularly instead of gift-shopping
Instead of buying the 8th toy for Christmas and the 5th outfit for Easter, transfer CHF 50–200 to the parents' investment account each time. Over 18 years of birthdays and holidays, these small contributions become enormous:
| Your regular gift | Frequency | Total contributed over 18 years | Value at age 18 |
|---|---|---|---|
| CHF 100 | Every birthday | CHF 1,800 | ~CHF 3,800 |
| CHF 200 | Birthday + Christmas | CHF 7,200 | ~CHF 14,500 |
| CHF 50/month | Monthly standing order | CHF 10,800 | ~CHF 23,000 |
CHF 100 per birthday — the cost of a toy that breaks in a month — becomes CHF 3,800 at 18. And the child won't remember the toy. They'll remember the CHF 3,800.
For godparents: Your unique role
Being a godparent (Götti/Gotte) is a special relationship. You're not just giving a gift — you're investing in a person's future. Literally.
The classic Götti/Gotte gift: a savings book at PostFinance with CHF 500. Well-intentioned, practically useless. After 18 years at 0.75%, that CHF 500 is CHF 572. The same CHF 500 invested is CHF 1,700.
The modern godparent protocol:
At the baptism: gift CHF 500–1,000 as a lump sum investment. Then: CHF 50 per birthday, CHF 50 at Christmas, straight into the investment account. Total over 18 years: CHF 2,300–2,800 contributed. Value at 18: CHF 5,000–7,000. A meaningful sum. Built from gifts that individually cost less than dinner out.
Note on gift tax for godparents
Unlike parents and grandparents (direct-line relatives), godparents are legally "unrelated" for gift tax purposes. In most cantons (including Zurich), there's no gift tax on amounts under CHF 5,000–200,000 between individuals. For typical godparent contributions of CHF 50–200 per occasion, this is never an issue. If you're planning a large gift (CHF 10,000+), check your canton's specific rules.
How to suggest it without sounding like a financial advisor at a baptism
The awkward part: telling grandparents and friends "please don't buy toys, invest instead." Here are phrases that actually work:
For grandparents: "We've started an investment account for [baby's name]. Instead of gifts they'll outgrow, would you consider contributing to it? Even CHF 100 grows to over CHF 300 by the time they're 18. We'd love your help building their future."
For godparents: "We know you'll want to spoil [baby's name] — and we love that. But if you're looking for the baptism gift: a contribution to their investment account would mean more to them at 18 than anything we could buy today."
For friends: "We're keeping things minimal with baby stuff (we already have everything). If you'd like to bring a gift, a contribution to [baby's name]'s future fund is the thing they'll benefit from most. Here are the bank details."
For the baby shower: Skip the registry. Instead: "In lieu of gifts, we're building an investment for [baby's name]. Any contribution — CHF 20, CHF 50, CHF 100 — will be invested and grow with them for the next 18 years."
You'll never regret giving too little stuff and too much future.
The letter that makes the gift unforgettable
Here's what makes this gift special 18 years from now: a letter. Write it on the day you make the investment. Seal it. Give it to the parents to store. And on the child's 18th birthday, they open it alongside the portfolio statement.
Dear [name],
On the day you were born, I invested CHF [amount] for you. Not in a toy. Not in a savings book. In something that would grow with you — silently, patiently, every single day for 18 years.
I wanted to give you something that time could multiply. Something that would be more valuable the longer it existed. Something that represented my belief in your future — even before you could hold your head up.
The companies in this portfolio — Visa, Microsoft, L'Oréal, and others — have been working for you since the day you were born. Every time someone tapped a card, opened a laptop, or bought a bottle of shampoo, a tiny piece of that went to your future.
This money is now yours. Spend it wisely, invest it further, or use it to start something you believe in. Whatever you do: know that someone believed in your future before you even had one.
With love,
[Your name]
[Date of birth]
That letter will be the most meaningful piece of paper your grandchild, godchild, or friend's child ever receives. More meaningful than the portfolio statement next to it.
Frequently Asked Questions
What's the best amount to give at birth?
Any amount works. CHF 500 becomes CHF 1,700. CHF 5,000 becomes CHF 17,000. CHF 10,000 becomes CHF 34,000. The "best" amount is whatever you can afford without strain. The key is investing it, not the size.
Can I invest for a grandchild who lives abroad?
Yes. If you invest in your own name (in Switzerland), the location of the grandchild doesn't matter — you control the account. When it's time to gift the money, you transfer it. The arvy equity fund (ISIN LI1306144786) is also accessible globally — the child can hold it from anywhere through any broker.
Is a Goldvreneli really a bad gift?
It's not bad — it's beautiful and traditional. But as a financial gift, it barely keeps up with inflation. The ideal: give the Goldvreneli for the ceremony and the emotion, and invest an equal amount alongside it for the growth. Best of both worlds.
What if I want to give CHF 100 per birthday — is that enough?
Absolutely. CHF 100 per birthday, invested over 18 years, grows to ~CHF 3,800. And if you add CHF 100 at Christmas too: ~CHF 7,600. Small, consistent gifts compound into meaningful sums. That's the entire point.
How do I actually transfer the money?
Ask the parents for their arvy account bank details (or their regular bank account, if they invest through another provider). Transfer the amount with a reference like "For [child's name]." The parents add it to the investment. That's it — no special forms, no legal complexity.
Should I tell the child about the investment?
Yes — but at the right age. Around 10–12, start showing them the portfolio. Explain what the companies do. Let them see the numbers grow. By 18, they'll understand the value of compound interest — and the value of your gift. → A Dog Called Money: Teaching kids about investing
Further reading
📋 Children's Account: Complete Guide
All articles, calculators & guides on one page
🧮 Child Investment Calculator
Milestones from birth to age 40
💰 CHF 50/Month for 18 Years
The complete parent's guide to investing for children
⚖️ Tax, Legal & the 5 Mistakes
Who pays tax? What happens at 18? Gift tax?
📚 A Dog Called Money — Book Club
The world's best children's finance book
🧮 Child Investment Calculator
See what every gift becomes at each milestone
This article was written by Thierry Borgeat, Co-Founder of arvy, and reviewed by Patrick Rissi, CFA, and Florian Jauch, CFA. Last updated March 2026.
Disclaimer: This article is for general informational purposes and does not constitute personal investment or tax advice. All projected returns are based on historical averages (7% p.a. for global equities) and are not guaranteed. Gold returns are based on long-term historical averages (~2–3% p.a. real) and may vary. Gift tax rules vary by canton. arvy is a FINMA-supervised asset manager. Legal Notice & Disclaimers
