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Risks with Junior ISAs

I am thinking of moving my children’s junior ISAs that are with Santander currently on a low % interest to a stocks and shares ISA with a higher rate. 
My children are 1 and 5 so this is long term. I wanted to know if people had experience of actually losing money with long term JISAs (assuming it is with a reputable/ well reviewed provider) 

all info is helpful at this point. 

Thanks

Replies

  • dunstonhdunstonh Forumite
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     I wanted to know if people had experience of actually losing money with long term JISAs (assuming it is with a reputable/ well reviewed provider) 

    JISAs can invest in around 30,000 different assets.    If you stuck it all in a single company share that went under then you would lose the lot.     It is where you invest that matters.   Where were you looking to invest?

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AlexlandAlexland Forumite
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    Whatever you do you should move it away from Santander as there are much better cash JISA rates from other providers see MSE guide.
    https://www.moneysavingexpert.com/savings/junior-isa/
    As above the return on S&S will depend on what investment decisions you make within the S&S JISA wrapper.
    Assuming you make reasonably good decisions and keep costs low (eg avoiding friendly societies) then it seems most likely that your kids will make a positive return by the age 18.
    However given current market valuations to make a return better than the best cash JISA rates will require a fairly adventurous asset allocation and ultra low costs.
    Our kids JISAs are with Fidelity who charge nothing on junior accounts if you stick with funds and they are invested in low cost passive funds.
  • MFW2026MFW2026 Forumite
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    I moved ours from Santander to vanguard and using a lifestrategy fund as ideal for new investors who want to make a start. 
    Nurse striving for financial freedom
  • AlexlandAlexland Forumite
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    MFW2026 said:
    I moved ours from Santander to vanguard and using a lifestrategy fund as ideal for new investors who want to make a start. 
    You can get all the VLS funds on Fidelity and save Vanguard's 0.15% platform charge.
  • MFW2026MFW2026 Forumite
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    Thankyou. Can I pay into fidelity jisa if DONT pay into vanguard jisa this year and leave it there? Or can you only hold one s&s jisa st one time??
    Nurse striving for financial freedom
  • edited 21 April 2021 at 7:53AM
    AlexlandAlexland Forumite
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    edited 21 April 2021 at 7:53AM
    MFW2026 said:
    Thankyou. Can I pay into fidelity jisa if DONT pay into vanguard jisa this year and leave it there? Or can you only hold one s&s jisa st one time??
    No it would need to be transferred as the child can only have once of each type.
    Unsure if Fidelity are accepting in specie JISA transfers yet or if it would have to be a cash transfer with time out the market.
  • willaldridgewillaldridge Forumite
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    Thanks guys really helpful. Will check out the different options mentioned. 
    Wife is fairly risk averse but I think in long term you can move to some med risk funds. 

  • edited 21 April 2021 at 8:58AM
    AlexlandAlexland Forumite
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    edited 21 April 2021 at 8:58AM
    Wife is fairly risk averse but I think in long term you can move to some med risk funds. 
    Yes you would normally switch to less volatile investments as you approach the withdrawal date however with such good cash JISA rates it might be better to just switch back to cash for the last few years. Depends on the market conditions at the time and if the money is likely to be spent at 18 or left invested for longer.
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