MSE News: Banks shun junior Isa launch

jamesd

Thanks, hadn't noticed the lack of loyalty bonus/rebates from HL. That helps the case for Fidelity.

Credit-Crunched

jamesd wrote: »

With the R85 the total interest could exceed the limit that is ignored and be taxed as if it's the income of the parents. You avoid that issue with the JISA.

£3600 a year isn't that much for parents trying to do things like invest to pay university fees. I expect that lots of middle class parents will be using them to invest for that reason.

family of 4 and you think 7,200 per year is not a lot to put aside....

Have you not opened a newspaper in the last 4 years, gas, electric, food, commodities, petrol, council tax all on the rise and squeezing lots of familes very tight

it will be only yhe middle to upper class that benefit from yet another tax break

jamesd

Let me try a reworded sentence: Considering how high university fees are, just putting away £3,600 a year isn't that much if the idea is to be able to pay for all of the costs.

Affordability is a different issue. I don't personally believe that it makes sense for most parents to pay for the university costs. Better to provide capital for a property purchase instead, because it's harder for a young person to gather deposit money than it is to pay a portion of their income once it's above average already.

competitionscafe

jamesd wrote: »

Thanks, hadn't noticed the lack of loyalty bonus/rebates from HL. That helps the case for Fidelity.

It was quite hard to notice - I only did because their latest bumph came through the post and in the small print it said that no loyalty bonus will be paid on funds held in a JISA, SIPP or on amounts under £1000. (I already knew about the latter two).


There is a list of JISA providers here, which may be useful:
http://www.moneyobserver.com/node/4382

EagerLearner

Hi everyone,

If I opened an investment JISA for my newborn with Hargreaves for example, how would contributions from family members work? Once they transfer cash, does the money just sit on account?

jamesd

Yes, normally just cash. Ask HL if it's possible to set up something else.