Stuck with kids JISA's

Twinsdad1844

Evening all,

So my/kids situation is they (15 year old boys) have around £35,000 in a Halifax cash JISA paying 2%.  I attempted last year to transfer £25000 to a S&S JISA but no provider was willing to do a partial transfer, Vanguard etc.

I would like to keep £10,000 in a cash ISA so do you think this would work, transfer the full lot into Vanguard/Fidelity and split the allocation between say £25,000 70/30 and £10,000 80/20, then transfer the £10,000 later back to a cash ISA?

It seems a convoluted way of splitting the money but can't see another way of doing what should be a relatively simple thing?

Thank you

xylophone

Do they each have £35,000 in a JISA?

Have there been contributions in the current tax year?

Keep_pedalling

As they are fast approaching their 18th birthdays when will have full control of their ISAs I’d this the right time to move then to long term investments?

Also puzzled by the singular use of JISA.

Alexland

To do partial JISA transfers both losing and gaining providers need to support the process and you are not allowed to split current year contrbutions. JISAs tend to be small accounts with the extra rule of only one of each type so many providers would not bother with partial transfers.

A few Cash JISA providers such as Tesco will support inbound partial JISA transfers but this is only allowed if the existing account is a S&S type to avoid having two Cash JISAs at once. There are no S&S JISA providers that I am aware of who will support inbound partial transfers however their websites are unclear of if they would support outbound partial transfers but generally I would expect they would not however I guess you could spend some time reading their full terms of business or contacting them in writing to find out.

So yes it may not be possible to do what you would like even though it could be allowed under the rules.

Twinsdad1844

Yes they have £35,000 each and have not made any contributions this tax year.  It should be possible to do partial transfers but for whatever reason (I suspect extra admin) the number of providers I asked would not do it.

Maybe I should bite the bullet and go 'all in' with a S&S ISA option....

Thanks for your replies

Alexland

Twinsdad1844 said:
Maybe I should bite the bullet and go 'all in' with a S&S ISA option....

It really depends on what the boys are likely to do with the money when they turn 18. For example if they are likely to spend it on university then there probably isn't enough time to ride out the potential volatility of a S&S investment. However if the money is likely to be used later say in their mid to late 20s for property deposits then there should be enough time for S&S although with current asset valuations forward return expectations are lowered so the enhanced interest rates found on children's Cash JISAs might do as well as a balanced 60/40 style investment with no risk to capital.

xylophone

You could leave the cash as it is and open a stocks and shares JISA for each of them with this year's subscription and continue in subsequent years.

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.