Having a baby changes everything especially your bank balance. We offer a range of services to help you deal with those extra costs, so that you can sit back and enjoy the moment, without worrying about the financial side of things.
You can apply for a delay to your payments by sending us the payment schedule from the maternity/paternity fund (Fæðingarorlofssjóður). We will review your payment schedule and subsequently ask you to sign- off on any changes to the Terms and Conditions of your mortgage. The costs associated with these changes can be found in Íslandsbanki's price list.
We all worry about leaving our loved ones behind. The financial decisions you make today can influence their future. Mortgage protection cover can pay off part or all of your mortgage after death. You can apply for mortgage protection if you are between the ages of 18-49 and you will remain protected until the age of 70.
You can apply for maternity/paternity before the birth, adoption or permanent fostering of a child.
If you have been active on the domestic labour market in at least 25% employment for six consecutive months before the child’s date of birth or the date on which a child enters the home in the case of adoption or permanent foster care you can apply for payments as an employee or a self-employed individual.
Applications and other supporting documents should be submitted 6 weeks before the child’s estimated date of delivery or 6 weeks before the starting date of the maternity/paternity leave.
We recommend using the electronic forms on the website when applying for payments.
Please keep in mind
Payments are made retroactively for the preceding month. The month of April is therefore paid at the end of April.
You have the right to take your maternity/paternity leave in a one continuous period. By making an arrangement with your employer, you are allowed to divide your maternity/paternity leave into several periods or over a longer period of time, with or without a reduced work-time ratio. Maternity/paternity leave needs to be taken for at least two consecutive weeks. The mother shall be on maternity leave for the first two weeks after the child is born. You can start your maternity/paternity leave up to one month before the expected date of delivery. Your right to take maternity/paternity leave expires when 24 months have passed from the child’s date of birth.
Child benefits are paid with every child under the age of 18 years, domiciled in Iceland and dependent on a person or persons who have an unlimited tax liability in Iceland. The child benefits are paid to the child's supporter, i.e. the person that the child is living with and is dependent upon at the end of the previous income year. The person that pays child support is not regarded the child's supporter in this context.
Persons that share a household with their child are both considered the child's supporters even if they have not registered their cohabitation.
Child benefits in Iceland are income related and calculations are based on both parents / supporters' total income for the previous year. In the case of a single parent, only the income of that parent is used in the calculations.
If you have been occupied in at least 75% studies for 6 months during the last 12 months before the child’s date of birth or the date on which a child enters the home in the case of adoption or permanent foster care you can apply for a maternity/paternity grant as a full-time student.
If you have not been active on the domestic labour market, or employed in less than 25% of a full-time position for the last 6 months before the child’s date of birth or the date on which a child enters the home in the case of adoption or permanent foster care you can apply for a maternity/paternity grant.
As a ground rule, you need to be a legal resident in Iceland on the child’s date of birth and need to have been a legal resident in Iceland for the last 12 months before that date
Maternity care is free in Iceland, but early fetal ultrasounds and parenting courses will cost money. However, various labour unions in Iceland may subsidise these courses. You will also need to own various items such as a car seat, crib, pram, clothes and nappies. Babies grow out of their clothes very quickly, so borrowing from relatives or friends or buying used clothes can save you a considerable amount of money.
Maternity/paternity leave will only cover up to 80% of your wages which means that you will have to make up for the rest. Savings can bridge the gap until you go back to work. Assess the costs you will need to cover and start putting money aside so that you won't fall short when baby arrives.
Regular savings: Automatically transferring money to a savings account each month is the most efficient and effective way to save.
Saving for the future can start early. Our savings options for younger customers are designed to meet their expectations and yours.
Future Plan is an indexed savings account for children and young people who want to lock in their savings until the age of 18. The perfect gift from loved ones who want to help create a future nest egg for the child or young person in question.
Automatically transferring money to a savings account each month is the most efficient and effective way to save. Making regular small deposits can be just as effective as making less regular, larger deposits because every little bit counts. Before you know it, your child will have a substantial nest egg to invest in their future. You can start automatic transfers at any time before the child's 15th birthday.
