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

Alexland

Yes there is a charge from the fund manager you choose to invest with (as would be the case on any platform) and charges if you want to buy exchange traded shares. But if you stick to funds then there is no platform charge from Fidelity.

ChilliBob

Ah I see, so in essence if you were to use a different provider then you're basically saving whatever the platform fee is really? So (if they offered it!) in the case of iweb this would be £25?

Alexland

ChilliBob said:

Ah I see, so in essence if you were to use a different provider then you're basically saving whatever the platform fee is really? So (if they offered it!) in the case of iweb this would be £25?

With the Fidelity Junior ISA there is no setup or ongoing fee to trade/hold funds so in the case of iWeb (if they offered Junior ISAs) you would be saving the £25 setup and £5 trade fees (provided you stick with funds). Or in the case of Vanguard Investor you would save the 0.15% ongoing platform fee. Basically you pay Fidelity nothing (unless you invest in Fidelity funds or want exchange traded investments) but the fund managers such as Vanguard, HSBC, Blackrock, etc still need paying as normal within the fund. It means you can run the Fidelity account with a zero cash balance.

ChilliBob

Okay, so morals aside, (since this is technically your child's future you're dabbling with!) , if there was anywhere to have as more of a 'playground' where you might dip in and out of stuff more frequently this would be it?

I don't *intend* to do that mind, but it's good to know. 

Cheers. 

AnotherJoe

Alexland said:

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.

If you hold funds ....

Alexland

AnotherJoe said:

Alexland said:

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.

If you hold funds ....

Was that not clear enough? I said it twice....

AnotherJoe

Alexland said:

AnotherJoe said:

Alexland said:

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.

If you hold funds ....

Was that not clear enough? I said it twice....

Id say no because someone obviously new to investing might not take up the specific meaning of "funds" and just think you mean investments ... and of course i shoudl ahev been clearer and say "If you hold funds .... rather than ITs, shares or ETFs"

hermante

Why are you only allowed to have one Junior S&S ISA at a time?

eskbanker

hermante said:

Why are you only allowed to have one Junior S&S ISA at a time?

Don't recall seeing anyone saying that?

Anyway, the government rules permit two, a cash one and a S&S one, as per https://www.gov.uk/junior-individual-savings-accounts

There are 2 types of Junior ISA:

• a cash Junior ISA, for example you will not pay tax on interest on the cash you save
• a stocks and shares Junior ISA, for example your cash is invested and you will not pay tax on any capital growth or dividends you receive

Your child can have one or both types of Junior ISA.

cloud_dog

hermante said:

Why are you only allowed to have one Junior S&S ISA at a time?

Perhaps it is a protection mechanism to reduce the possibility of multiple accounts being used in the same FY, i.e. as adults we know (or should do) if we have opened / contributed to a ISA in a FY, whereas with children there may be two separated parents who may open one, with Grandparents who want to contribute at odd time.  Perhaps it is just for simplicities sake.