S&S ISA for a New Born

Cptralls

Herbalus said:

I can confirm that. Started JISA with a £1k gift from grandparents and I then set up an £84.20 DD to top up monthly. (Amount of child benefit for anybody wondering why an odd amount).

I’ve now stopped that as prefer to top up manually using a Halifax debit card, but that’s for a reason most will know about and isn’t relevant to whether a direct debit smaller than £100 works.

What platform do you use? 

xylophone

What platform do you use? 

Vanguard? What he is confirming is that they do not enforce a minimum £100 monthly investment?

Alexland

xylophone said:

Vanguard? What he is confirming is that they do not enforce a minimum £100 monthly investment?

Yup that's how I read it.

Cptralls

So I'll wait until the beginning of September to review this potential new account. Otherwise it's Vanguard, with the £200 in gifts that she has and this topped up when Mummy and Daddy can afford to.
Next point of consideration is an account that offers the best potential value when she reaches 18 and one that doesn't need constant management. 

Alexland

Cptralls said:

So I'll wait until the beginning of September to review this potential new account. Otherwise it's Vanguard, with the £200 in gifts that she has and this topped up when Mummy and Daddy can afford to.

As per previous posts to open a Vanguard account requires either an initial £500 lump sum or setting up a £100 per month regular contribution. Now if you open it with a commitment to pay £100 per month and then stop it after 2 months then only the £200 would have been contributed and Vanguard might not notice the account hasn't grown to £500 yet but it's not really within the spirit of their terms so they might write to you eventually.

Next point of consideration is an account that offers the best potential value when she reaches 18 and one that doesn't need constant management. 

Whether you go with Fidelity or Vanguard it's worth ongoing consideration on if more advantageous platform or fund options become available during the life of the account but from age 18 if she buys a motorbike with her money that wouldn't be an ISA eligible investment.

Cptralls

Alexland said:

Cptralls said:

So I'll wait until the beginning of September to review this potential new account. Otherwise it's Vanguard, with the £200 in gifts that she has and this topped up when Mummy and Daddy can afford to.

As per previous posts to open a Vanguard account requires either an initial £500 lump sum or setting up a £100 per month regular contribution. Now if you open it with a commitment to pay £100 per month and then stop it after 2 months then only the £200 would have been contributed and Vanguard might not notice the account hasn't grown to £500 yet but it's not really within the spirit of their terms so they might write to you eventually.

Next point of consideration is an account that offers the best potential value when she reaches 18 and one that doesn't need constant management. 

Whether you go with Fidelity or Vanguard it's worth ongoing consideration on if more advantageous platform or fund options become available during the life of the account but from age 18 if she buys a motorbike with her money that wouldn't be an ISA eligible investment.

Holding off now until we have £500 built up.