children's savings/investments - child trust fund (stocks and shares) and/or junior ISA/savings 17 February at 12:59PM in Savings & investments 2 replies 110 views

SpendingMoney

hello - I've just read Martin's savings for children and am more confused than ever!

My 14 year old has a CTF Stocks and shares (started in 2008) and extra money was added over the years-  it is with Foresters financial and has gained value from £7100 to £7900 from May last year to last week - so is performing well.

My 9 year old daughter doesn't have one

I have about £30 a month for each of them to invest.

According to Martin's advice - Junior Isa's are giving less interest than current accounts - so I'm not inclined to go that way - but on the other hand my son's CTF seems to be out-performing both of these investments.

Should I open a similar account for my daughter and keep my son's as it is?

Or open a Junior Isa (stocks and shares) for my daughter and a standard savings account for my son?

cloud_dog

A 9 year old will have c. 9 years invested in the stock market, which I would suggest is enough time to utilise a S&S JISA.  However it really doesn't matter what I think, you would need to be comfortable with this choice.

If you do decide to use S&S JISA you should look at using Fidelity as they do not apply a platform charge to their junior products and there aren't any transaction fees when investing in OEICs / funds.  And, they will happily accept £25pm (or more), rather than others who may have a  higher minimum contribution level.

Unlike a CTF, a child can have both a cash savings JISA and a S&S JISA, if this helps at all?

ispookie666

+1 for Fidelity Junior ISA or Junior SIPP (it’s a marketing ploy) or both.   
I have set up both for my DD, who is 15 and started the SIPP last year and have increased the contribution to it at the expense of ISA.  We are hoping to be able to continue to support her when she heads off. Irrespective of how much financial education is provided, I’m weary of her accessing the whole ISA, even though it’s hers!  

The advantage of SIPP - Any money you add with be increased by 20% HMRC.  The period of compounding is immense.  But it’s a bit alien, and I don't think I’ll be around to see her benefit from the SIPP!  

Both of these are invested in Index tracker funds.