Junior Stocks & Shares ISA offers?

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Hi, new member having lurked for a while. I've been looking at transferring my kid's child trust fund, given low growth & relatively high charges, to a Junior Stocks & Shares ISA

Has anyone seen any offers other than these?

£50 incentive for opening a Junior ISA from Scottish Friendly, with 1.5% fees

£100 incentive from Orbis Access for opening a junior ISA and also seems to be saying no fees charged for money invested in the first year for the whole time you hold the account.

£50 voucher offer for opening a Junior ISA from OneFamily (through MoneySupermarket) and 1.5% fees

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  • jimjames
    jimjames Posts: 17,676 Forumite
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    Bear in mind that most, if not all, providers giving gifts are doing so out of your money not theirs and you may be better off finding the best/cheapest provider rather than one paying the most money out up front.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    As CTFs are no longer available to kids born today, they are becoming increasingly niche which equals less choice or less competition on price and so moving to the more "modern" product, JISA, can make sense.

    However, unless you are going to get into a habit of perpetually jumping ship to get a welcome bonus, you probably shouldn't be buying something just for a freebie.

    For example, you said your old fund had high fees. Yet two out of the three that you listed want to charge 1.5% a year, which is high. On a "fund supermarket" type platform with thousands of investment choices, the platform fee would be easily under 0.5% and the management fee and operating costs of the fund(s) itself that you chose to hold on the platform, would be easily under a percent. So 1.5% total, is over the odds.

    If you pay half a percent over the odds for your JISA and you have £10k invested in it, it's costing you £50 a year more than the competition. So to grab a one time £50 incentive for doing that, is a false economy. Obviously less of a big deal if you are only transferring in ir investing tiny amounts - so that any bonus feels relatively big.

    The Orbis product is relatively interesting as they don't have management fees but have performance fees only for beating a benchmark. This means that in a given year the fees can be nothing or massive. And due to the timing of how they draw their performance fees your new money invested in a particular year might not get a return but they might still be paying themselves for their earlier outperformance that allowed then to earn the fee for several years straight. The performance-only fee also incentivises them to take higher risk than the benchmark.

    My basic answer to your question is, no I don't have a list of JISAs with the biggest bonuses - but you shouldn't buy on shiny trinkets alone.
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