Investment for niece

ozzage

bowlhead99 wrote: »

Another thing to consider is that like adults, children can only be contributing to one S&S isa in a particular tax year. So if you set one up just for your private, paltry contributions (no insult intended), you scupper the opportunity for the parent and grandparents and any other aunties and uncles etc.

Actually if I understand the rules correctly, a child can only have one cash and one S&S ISA at any time, irrespective of tax year.

So once you open a S&S ISA for a child, they can't ever have another one unless they transfer the full amount out of the old one to the new one and close the old one.

Arthurian

From the Money Advice Service website:-
You can switch between the two types of Junior ISA or from one provider to another whenever you like. But make sure you do this carefully so you don't lose the tax-free status on the money. A child can only have one Junior Cash ISA and one Junior Investment ISA at any one time.

You cannot currently transfer a Child Trust Fund account into a Junior ISA, though this is due to change in April 2015.

VT82

Holy revive-an-old-thread Batman!

Weird, because I actually tried to revive it myself last week, but the quick reply got lost when MSE tried to get me to log in even though it said I was already logged in, and then I couldn't be bothered to type out my long reply again!

But this has inspired me to reply properly, so here goes...

I never did get my sister to open the JISA for my niece last year. She got toys from me. And, yes, gutting that I've missed out on a year of solid returns on her behalf!

I've given her money this year, but would still like to help set up an ISA. I guess it will still be a case of opening with a lump sum of a few hundred pounds, and then moving £25-£50 per month from her other savings into the JISA. So I could still do with pointing in the right direction on this.

Has the RDR changed anything at all? Is the Baillie Gifford scheme still a good one to go for, seeing as it's not an ISA? It would be nice if the money saved can already be ISA'd by the time my niece is an adult, but I guess with the annual limits going up massively, this isn't too much of a concern.

Thanks in advance for your advice.

kidmugsy

Scroll to pp 50, 51.
http://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats30Apr14.pdf

VT82

Thanks, that looks helpful.


So on page 51, it's got JP Morgan Asset Management JISA with nil initial charge, nil annual charge, and purchases/sales/transfers/switches all free of charge.


What's the catch? How do they make their money? And how would I go about getting one applied for if there aren't really any catches? I'm aware I'm just picking a supermarket, rather than what I'm actually having for dinner, but it'll be a start at least if I can get these questions answered. Thanks again.