Child Investment Plans

rmad24

With a new baby due in less than a month I want to start a "Child" investment plan of some sort.
I have been looking at J-ISAs but not really liking the typical %AER returns.

I have been also been thinking about investing with someone like Aberdeen or F&C.

Looking to put in £1000 lump sum, and approx £100-200/mth for 18years.

Any advice welcome, thanks

Reaper

You talk about JISAs as if they are only savings accounts, but you can have investment ones too. F&C offer them directly and you can buy Aberdeen funds through others.

xylophone

I have been looking at J-ISAs but not really liking the typical %AER returns.

https://www.gov.uk/junior-individual-savings-accounts/overview

You mean cash JISA? Halifax offers 6% if parent has ISA with them.
http://www.halifax.co.uk/isas/

http://www.hl.co.uk/investment-services/junior-isa

http://www.juniorisas.co.uk/stocks-and-shares-junior-isa

http://www.telegraph.co.uk/finance/personalfinance/savings/9868588/Junior-Isas-How-to-pick-the-best-saving-plan.html

Above links might be worth a look?

rmad24

Don't want a Junior ISA.
I was hoping to get other suggestions.

cloud_dog

rmad24 wrote: »

Don't want a Junior ISA.
I was hoping to get other suggestions.

Why:question:

The reason I ask why is that from the little info you've put it sounds as if a JISA is what you are looking for and has additional tax advantages

atush

Well I used investment trust savings plans for mine ( 3), incl F&C. You can open them in your name, with the child as designee. The money remains yours, and you can gift it to them when you like at 18 or even later.


But as it is legally yours, it could be taken in a divorce, a court judgement, or used as part of your savings if you went on means tested benefits.

xylophone

Don't want a Junior ISA.

Because you do not wish your child to have access at 18?

xylophone

investment trust savings plans for mine

Here is an example with explanation of designation and bare trust.

http://www.sit.co.uk/products/investing_for_children/features/questions_and_answers/

Note the "£100 rule" if going the bare trust route - the money belongs to the child beneficially but the income over £100 per annum will be taxed as that of the parent - the child must still have access at 18.

If designated, the investment belongs to you and if you wish it to go to your child in the event of your death you must cover this in your will.

Should you need means tested benefits the investment will be taken into account as your money.

Money invested by a parent through a JISA is not subject to the "£100 rule".

cloud_dog

xylophone wrote: »

Because you do not wish your child to have access at 18?

But the OP stated:

rmad24 wrote: »

Looking to put in £1000 lump sum, and approx £100-200/mth for 18years.

Therefore the 'concern' was considered but excluded from my response.

puk999

rmad24 wrote: »

I have been looking at J-ISAs but not really liking the typical %AER returns.

The returns depend on the investment funds/stocks you select. Think of the Junior ISA part as a tax-free wrapper around these investments.

xylophone

Therefore the 'concern' was considered but excluded from my response.

The OP might want to save until university age but not allow the child unfettered access to the money? His intentions/understanding of savings/investments/saving for child/on behalf of child/in child's name (or not) tax treatment etc do not seem wholly clear?