The government’s “gROwth – Junior Centennial Individual Savings Account” Programme

Legal framework

Programme description

The government’s “gROwth – Junior Centennial Individual Savings Account” Programme aims to set up a special savings account in the form of a deposit, hereinafter referred to as the Junior Centenary Individual Savings Account.

 

The holder of the individual Junior Centenary savings account can be any child who cumulatively meets the following conditions:

is a Romanian citizen;

did not reach the age of 18 years old.

The individual Junior Centenary savings account is opened in the child’s name, automatically, at the State Treasury units, without the need for a request from one of the parents, from the child’s legal representative or his / her proxy. The coordinates of the individual account of Junior Centenary savings and conditions of use are published on the website of the Ministry of Public Finance. Every holder has the right to a single individual Junior Centenary savings account.


In the individual savings account Junior Centenar, amounts of money in lei can be deposited by the legal representative of the holder or by other persons, at any time:

by banking transfer;

by postal mandate through the offices of the National Company "Romanian Post" - S.A .;

by cash through the cashiers of the State Treasury units

The amounts deposited annually in the account cannot exceed a maximum ceiling representing equivalent in lei at the values of 100,000 euros, calculated at the exchange rate from the last day of the previous year.

The amounts existing in the individual Junior Centenary savings account cannot be the subject of a transaction, they cannot be assigned or pledged, under the sanction of nullity of the respective documents.

In the case of children protected by specialized public and private services for child protection, the minimum annual deposit of 1,200 lei is made from the budget of the Ministry of Labor and Social Justice.

The transfer is made in December of each year, based on the certified situations and sent by the guardianship authority to the Ministry of Labor and Social Justice.

If the protected children are adopted, starting with the adoption dates, the deposit of the minimum annual amounts of 1,200 lei is up to the adopters.

State premiun and interest

Starting with 2019, account holders are entitled to receive :

state premium in amount of 600 lei annualy until reaching 18 years old, provided that the amount deposited in the respective year in the account is of minimum 1200 lei;

interest whose level is set at 3% per year which is applied to the account balance, except for the amounts representing the state premium.

If at the end of the calendar year the amount deposited in that year is less than the minimum amount of 1,200 lei, the account holder does not benefit from the state premium, but interest is granted for the account balance.

The state premium is established at the end of the calendar saving year, except for the year in which the holder reaches the age of 18 years old and is paid into the individual savings account Centenary Junior, at the maturity of the deposit, cumulated for the years in which deposits were made.

The interest is calculated and paid, at the maturity of the deposit, when the account holder reaches the age of 18 years old.

State premiums and interest recorded in this account are not taxable.

The state premium and interest are ensured from the state budget, through the budget of the General Secretariat of the Government, and are supported from the annual budget approved according to the law for the National Commission for Strategy and Prognosis, whose president is the tertiary authorizing officer.

Exceptional cases

The amounts existing in the individual Junior Centenary savings account cannot be withdrawn until the holder reaches the age of 18, except for the following situations:

in case of payment of health expenses for the treatment of the account holder in case of diseases with risk of death, respectively: infectious diseases, rare diseases, oncological diseases, congenital malformations, hematological diseases, diabetes, domestic accidents and intoxications;

in case of payment of the expenses for the support of the medico-social services from which the account holder benefits from pervasive developmental disorders, respectively in case of payment of the expenses of complex psychoneuromotor medical recovery;

in case of death of the account holder.

The maturity of the deposit is considered the date on which one of the exceptional cases occurred, the interest on the balance of the amounts deposited being calculated until that date.

The state premium is paid cumulatively for the years in which the deposits were made, including for the year in which the exceptional situation occurred.