Junior stocks and shares ISA

benchall

I'm thinking of opening a junior stocks and shares ISA for each of my two children, as the savings accounts I currently use for them pay a relatively low interest rate, which is usually fixed for only 12 months, meaning I have to open a new one every year (and I can't be bothered doing this for the next 15 years).

The issues holding me back are the fact that the money is locked away until their 18th birthday and that they can do what they wish with it from that date.

I'm wondering if I would be better off just opening a S&S ISA In my own name and in my wife's, to save on their behalf. (Neither of us have one at present, so we're not using any of our own allowance.)

Any advice or suggestions on which way to go would be appreciated.

Alexland

Yes if you don't want it locked away or risk the child spending it on a motorcycle at 18 then using your own S&S ISA is an option.

Worth looking at Vanguard Investor platform and maybe investing in a target date fund which will automatically reduce risk as they approach 18?

https://www.vanguardinvestor.co.uk/investing-explained/stocks-shares-isa

https://www.vanguardinvestor.co.uk/what-we-offer/target-retirement-products

(Don't worry about the word retirement they are suitable for any future lump sum withdrawal situation)

Alex