To save or not save that is the ISA

pdhmobile

I really dont know what to do for the best in this situation im in and im hoping the community can offer some advice.
I have 2 chldren, aged 8 and 11 and they have a halifax savers account (5%) that runs for 12 months and then drops into a halifax standard junior saver (0.1%) and I think its time to do something else with it.
Im swaying towards a childs stocks and shares ISA, the only downside is you cant take it out before they are 18 (which i dont plan to) and they get it at 18 regardless of circumstances (just thinking this might be to early, would prefer 21?)

Whats the general consensus?
Thanks

colsten

If you don't want your kids to have access to the money when they become adults, you could put the money into an ISA in your own name (assuming you haven't maxed your ISA limit).

Any money you give them after age 18 would come under the gifting rules. I.e. if you pass away within 7 years of making the gift, the money counts as part of your estate.

eskbanker

There are two separate issues at play here, i.e. access rights and choice of saving v investing.

On the first point, if the money is theirs, it's accessible to them at 18 regardless of where it is.  A junior ISA is only accessible from then but you can't legally keep it from them beyond 18 if it's their money in their names.

Regarding where to put it, you're on the cusp of investing for the older child, with 7 years to go, but maybe still worth doing for a one-off lump sum.  Alternatively there are cash JISAs if you're happy to suffer the slings and arrows of outrageous interest rates, although as with taxable savings, kids benefit from better rates than adults and they can get 3.25% at NS&I.

83705628

I think if you've already had the best rate from Halifax, so your best option now looks like Barclays or NS&I (https://www.moneysavingexpert.com/savings/child-savings-tax-free/#halifax, https://www.moneysavingexpert.com/savings/junior-isa/#jisatable).
S&S Junior ISA would be fine too. Most platforms offer them - Vanguard, HL...