Kids S & S Isa recommendations please - general advice and info?

ffurdoow

Completely new to saving via stocks and shares but could do with any advice - want to open a stocks and shares Isa for my son, have a lump sum to put in (approx 5-10k) and will be saving around 1k per year, in approx monthly installments of £100ish.

I am completely new to this so not sure what's best. I have heard Vanguard and Fidelity are good. For my purposes does anyone know which is more suitable (or can you let me know one that is?

All of the language feels a bit like gobledegook to me as I have never invested in this way, so any recommendations, pointers and advice greatly received.

DavidT67

https://www.moneysavingexpert.com/savings/investment-beginners/ 
https://www.moneysavingexpert.com/savings/stocks-shares-isas/

Alexland

Fidelity are a good platform for S&S JISAs offering a wide choice of funds with zero fund trade or ongoing platform charge. They are basically giving their service for free which is a great deal. You can still invest in Vanguard funds via Fidelity and avoid paying Vanguard Investor's 0.15% ongoing platform fee.
The most you can add to a JISA is £9k per tax year so you might need to hold some of it back until 6th April.
Remember the child gets full access to the money at age 18 and if you are not comfortable with that you may wish to use an adult S&S ISA (where Fidelity are not such good value) and gift the money later.
S&S investment is only suitable for time periods of at least 5 years preferably much longer to reduce the chances of withdrawing at a loss.

Albermarle

If you really do not understand anything about it then what made you decide to open a S&S ISA ?
There is an old saying 'never invest in anything you do not understand'
Although quite probably investing in a S&S ISA is a good decision, I suggest you take one step back and increase your knowledge level first.
Why do we invest? (monevator.com)

xylophone

https://www.gov.uk/junior-individual-savings-accounts

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa#:~:text=A Junior ISA is a,two types of Junior ISA:&text=Stocks and shares Junior ISA - where money is invested in,the end of the term.  may be worth a look.

You can hedge your bets and divide the JISA allowance between cash and stocks and shares if you wish.

dunstonh

want to open a stocks and shares Isa for my son,

You can't. S&S ISAs are an over 18 product.   There are Junior ISAs available though.

I am completely new to this so not sure what's best. I have heard Vanguard and Fidelity are good.

There are not as many junior ISAs available as S&S ISAs.  So, your choice is more limited.  That is why you often see thesame JISAs mentioned.

For my purposes does anyone know which is more suitable (or can you let me know one that is?

Vanguard only retail own-brand funds. Fidelity is near whole of market.

ffurdoow

Albermarle said:

If you really do not understand anything about it then what made you decide to open a S&S ISA ?
There is an old saying 'never invest in anything you do not understand'
Although quite probably investing in a S&S ISA is a good decision, I suggest you take one step back and increase your knowledge level first.
Why do we invest? (monevator.com)

thank you, appreciate that. I was probably a bit unkind to myself when I said I know nothing, I have read around and understand the basics about why we invest etc (I'm reading a very good book on the subject at the moment). I'm convinced that it's right for me but on the first step of selecting and opening on a suitable account platform in the UK is still a bit mindboggling to me, hence coming on here... all of the advice has been great though. Hopefully after the first step things will become clearer.

ffurdoow

dunstonh said:

want to open a stocks and shares Isa for my son,

You can't. S&S ISAs are an over 18 product.   There are Junior ISAs available though.

I am completely new to this so not sure what's best. I have heard Vanguard and Fidelity are good.

There are not as many junior ISAs available as S&S ISAs.  So, your choice is more limited.  That is why you often see thesame JISAs mentioned.

For my purposes does anyone know which is more suitable (or can you let me know one that is?

Vanguard only retail own-brand funds. Fidelity is near whole of market.

Thanks, sorry I meant a Junior S & S Isa, I should have been clearer.

Appreciate the advice, With whole of market maybe Fidelity is the way to go.

Gurj247

I have personally for my own daughter gone with the Hargreaves Lansdown Junior ISA - not sure how charges compare with Fidelity or others tbh, but liked their App and found it really easy to use. I also found they have quite a few guides that i found useful for my own interests / information 

Alexland

Gurj247 said:

I have personally for my own daughter gone with the Hargreaves Lansdown Junior ISA - not sure how charges compare with Fidelity 

HL charge 0.45% pa for holding funds and Fidelity don't so HL are infinitely more expensive. As long as you stick to funds Fidelity don't charge a penny. It's a free lunch.

liked their App and found it really easy to use.

Having used both (when we had HL LISAs) then I would say Fidelity have a better website however the HL app is much better which is why I still use the app's watchlist to track my investments elsewhere despite not being a HL customer.

ChilliBob

Alexland said:

Fidelity are a good platform for S&S JISAs offering a wide choice of funds with zero fund trade or ongoing platform charge. They are basically giving their service for free which is a great deal. You can still invest in Vanguard funds via Fidelity and avoid paying Vanguard Investor's 0.15% ongoing platform fee.
The most you can add to a JISA is £9k per tax year so you might need to hold some of it back until 6th April.
Remember the child gets full access to the money at age 18 and if you are not comfortable with that you may wish to use an adult S&S ISA (where Fidelity are not such good value) and gift the money later.
S&S investment is only suitable for time periods of at least 5 years preferably much longer to reduce the chances of withdrawing at a loss.

This sounds awesome! I was thinking of doing this and this platform might be what tips me over the edge.. However, I looked here and it seemed there was a charge, I'm probably looking at the wrong bit?
https://www.fidelity.co.uk/junior-isa/fees-and-charges/#tab-link

Cheers!