14 year old son - cash JISA or investment JISA

lucyandthomas

Hi

My son has only had a cash JISA to date - I've been cautious (too cautious I know) about the value going down in an investment ISA, so I've stuck with a cash JISA.
Now - with interest rates for cash JISAs being rubbish - I'm thinking of splitting the money between a cash JISA and an investment JISA.
Question is, is it a bit late to think about a JISA for him now, as it will mature in 3.5 years? I keep reading that investments should really be for 5-10 years. My plan (and hopefully what he would do!) would be to transfer the invested JISA money into an adult investment ISA, so the money would remain invested, probably with the same provider if we're happy with them.
Or, would it be better to put it in a cash JISA for the next 3.5 years and then encourage him to put some into an adult investment ISA when he's 18 instead?

Hope that makes sense
Thanks
 

lucyandthomas

To clarify - I mean, what should I do with new money going in for the next few tax years. I don't think I want to move the money he's built up in the cash JISA so far. It's earmarked for uni costs so I don't want to risk that reducing if he'll need it in 4.5 years time.

eskbanker

lucyandthomas said:

To clarify - I mean, what should I do with new money going in for the next few tax years. I don't think I want to move the money he's built up in the cash JISA so far. It's earmarked for uni costs so I don't want to risk that reducing if he'll need it in 4.5 years time.

If it's money that'll have even less than 3.5 years to go until he takes control of it then that makes investment even less suitable as an option, but if it's "earmarked for uni costs" then that presumably means that he has plans for what to do with his money so it should be his decision.

Alexland

It's a little bit confusing but I think you are saying the money already in the Cash JISA should stay in cash as they are likely to spend it from age 18 on university which sounds sensible. Interest rates for such accounts are not rubbish they are still over 2% if you shop around and are willing to transfer the account to this highest payer currently Darlington BS.

https://www.moneysavingexpert.com/savings/junior-isa/#jisatable

For new money you add in the next few years it really depends on if it will also get spent on uni or if it might not be needed for 5-10 years in which case it might be suitable to use a S&S JISA alongside the Cash JISA if you are both comfortable with investment risk and then allowing the S&S JISA to mature into a S&S ISA at age 18.

A_Lert

He's old enough that you could ask him what he'd prefer? The predictable cash ISA, or the chance of more but also the chance of less of the investment.