Small time investing S&S Isa

Engineer87

Good afternoon,
Since my daughter was born a year ago i'v saved £40 per month into her junior ISA @ 3%.

I THINK I'd now like to switch and start saving/investing a similar amount per month into a stocks and shares ISA (My name and possibly with Legal and General). It's effectively her money but for when she's sensible enough!!

I am by no means an 'investor' so I have a few basic questions I can't readily find the answers to. Maybe the more experienced would know the answers..

1. I would like to continue putting away £50 per month likely into a fund. Its not a lot but it's sustainable for me. It says I need to contribute a minimum of £50 per month. What if I decide I don't want to for a period? Can I just stop putting in for a bit like I would with a cash ISA??

2. I'm still trying to get my head around the charges. I know there will be no simple answer to this....but in layman terms, how does this costing work out? Is it going to be more expensive to invest monthly rather than an a lump sum?

I'm still doing a lot of reading to see if its actually for me, but i'd appreciate any insights. Many thanks

Richard

Keep_pedalling

You don't say what company you are looking at, but I have been looking at a Vangaurd JISA for my yet to be born grandson, and you can certainly stop monthly payments any time you like so i would imagine that it is the same for other companies.

Different companies have different fee structures. Some have fixed fees which is good for large amounts but poor for small, others charge a percentage of funds which is better for you, and that does not really make much difference if you put in a lump sum or drip feed.

The big issue is the size of those fees, which is why I am looking at Vanguard who charge 0.15%. They do have a minimum of £100 per month or £500 lump sum though, so you would need to save up and put in lump sums rather than £50 pm.

I don't think leaving your daughters ISA in cash is a great idea though, as in sixteen years it will have no more spending power than it does today at 3% interest. I would shift that into a S&S JISA

chelseablue

I have a S&S ISA with Hargreaves Lansdown, its in my name but with a view that its for my son when he's older.

At the moment I just put in the minimum which is £25 a month. My plan is that when we're not paying the hugely expensive nursery bill I'll increase this to £100 a month (the £82 child benefit rounded up to £100)

I'd say for a beginner HL are good, their website is very easy to use.