Top Junior ISAs guide: discussion

Eco_Miser

Fortunately, you can research platform fees at http://monevator.com/compare-uk-cheapest-online-brokers/ and fund management fees at http://www.trustnet.com/

Shoose

hi, re Halifax Junior ISA being 3%, or 4% if the nominated adult also holds a Halifax ISA. We went to Halifax this morning, and we thought of opening an adult ISA with £1 in my husbands name (my husband has transferred balances this tax year between cash ISAs but has not paid into one) so we could open two Junior ISAs, one for each daughter. One daughter has a CTF which we were looking to transfer into the ISA, but we were told she would not be able to benefit from 4% if the adult ISA was in my husbands name, as I am the main contact for the CTF. I would need to open the ISA in my name. Is that correct? I have already paid into a cash ISA this year so could not do anything now. Would this mean that whichever ISA we chose for her, I would need to be the main contact for the account? Thanks

colsten

Depending on how much you have in your ISA, and what sort of ISA it is, you could probably just close it and open another one at Halifax.

You'd probably also get a lot more interest in non-ISA accounts for the majority of your cash.

xylophone

The Halifax specifies
Extra interest if the registered adult holds a Halifax Cash ISA.

You could transfer your ISA into the Halifax to qualify then transfer out all but a small sum after April 6.

Shoose

Thanks for the replies. So since I am the main contact for the CTF (which I am presuming means I am the trustee) only I can move it, not my husband, and wherever I move it to ISA wise, everything going forward would need to be in my name only on my daughters behalf, so my husband cannot be named on it at all?

xylophone

https://www.gov.uk/child-trust-funds/managing-the-account

if you want to change the registered contact.

matchmade

I took out a Child ISA in Sept 2015 when my daughter was six months old. I researched quite carefully and chose as follows:

1. The aim of the JISA is to maximise tax-free capital gains, so my daughter has a large lump sum to cover her university fees and hopefully the basis for a house deposit too. I will be very lucky if I manage to put away the full £4080 allowance every year for 18 years, even given some help from the grandparents, and of course the Government may abolish the JISA or change the rules in future. However, assuming I am able to invest £4080 a year for 18 years, with an average growth rate of 7%, the lump sum will be £143,112, or just over £100,000 in today's money assuming an average of 2% inflation. That £100K will be a good way to start anyone's adult life.
2. a cash ISA is pointless when you've investing for 18 years. Equities are almost guaranteed to beat cash and bonds over such a long timeframe.
3. I'm not sophisticated enough as an investor to choose individual equities wisely, so I'm investing in collective funds like unit trust and investment trusts to spread the risk.
4. The JP Morgan JISA was judged the best one by Moneywise in 2014; the Alliance one was second. JPM charge zero setup fees and have no annual fees on their JISA, though of course there are management fees within each fund. If you invest in JPM funds, there's no £10 brokerage fee when you make a new purchase. This seems like a good deal to me.
5. I chose specific trusts on the basis of past performance and the ratings at Trustnet, with additional comments researched at Morningstar and John Baron's portfolio website. I chose mid-cap and smaller companies as these tend to beat large-cap companies over the long term.
6. At the moment I am drip-feeding new money into the JISA every month, investing in JPM investment trusts only: 50% in JPM UK Mid-Cap (JMF), 30% in JPM US Smaller Companies, 10% in JPM Japanese and 10% in JPM European Smaller Companies.
7. Ideas for the future include: i) invest in a specialist tech, biotech or healthcare fund or a tech-heavy international trust like Scottish Mortgage, to benefit from long-term changes in technology, ii) invest in an Asia-Pacific funds, to benefit from long-term growth in India and China and surrounding nations. I'm avoiding emerging markets and commodity funds for the time being, due to market sentiment being so poor, even though this is probably the very time I should be investing as prices are so depressed. Who knows what to do, really? I'm just making an educated guess.

burnoutbabe

what are the options to save for a nephew? I would want it in a different share isa to mine (with selftrade for shares) so its clean. Can it be in his name (he is 3) and I pay into it. or is it only for parents to open/pay into? I'm a 40% tax payer.

VfM4meplse

Hi all,

I'm joining this thread late but am hoping this will be easily answered by those who have already opened a junior ISA.

What proof of ID and existence is required for the child? I realise there may be multiple options but would like to know what these might be.

xylophone

What proof of ID and existence is required for the child

Check on the web site of your chosen provider.