Children ISA to another children OR adult ISA - which rates are better?

Hello, I am new and rather confused to the world of ISA savings. 

I set up two junior ISAs' with One Family in 2011 & 2012 and the rates weren’t what I was expecting. So I have decided to transfer it to another ISAs’. The issue is which product; adult or children ISA or children savings account? The money will stay there until the children choose to buy their first home so I guess it is good interest rates that I am looking for. I am a bit overwhelmed with different types of savings on here. 

Any advice would be appreciated many thanks. 

Comments

  • refluxer
    refluxer Posts: 2,536
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    Money in a Junior ISA legally belongs to the child and can only be transferred to another Junior ISA until the child reaches 18, at which point they can do whatever they like with it.

    If their Junior ISAs are with One Family, are they Stock & Shares Junior ISAs ? If so, you might want to seek some financial advice about whether a transfer is necessarily the right move. Your only two options are either to transfer it to another S&S JISA or to a Cash JISA.

    When trying to judge how good your return has been in the last 12-13 years, bear in mind that the best Junior Cash ISAs have only paid around 2-3% AER for a good proportion of that period - it's only this year that they've risen to the 4-5% rates you can get now. 

    It's worth noting that your children can have both a Junior Stocks & Shares ISA and a Junior Cash ISA (one of each type) - both just share the same £9,000 PA Junior ISA allowance.

    MSE have a guide to Junior ISAs here, although it's mainly focused on Junior Cash JISAs as MSE don't give investing advice...

    https://www.moneysavingexpert.com/savings/junior-isa/
  • Albermarle
    Albermarle Posts: 21,085
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    Hello, I am new and rather confused to the world of ISA savings. 

    I set up two junior ISAs' with One Family in 2011 & 2012 and the rates weren’t what I was expecting. So I have decided to transfer it to another ISAs’. The issue is which product; adult or children ISA or children savings account? The money will stay there until the children choose to buy their first home so I guess it is good interest rates that I am looking for. I am a bit overwhelmed with different types of savings on here. 

    Any advice would be appreciated many thanks. 
    Useful to know these commonly accepted definitions, as you seem a bit confused with it all.

    Savings - Money in a savings account with a bank or building society. Your money is 100% safe ( as long as it does not go over the £85K limit and even then it is still pretty safe in reality) The account will pay an interest rate on the savings.

    Investments - This is money invested in the financial markets, stocks and shares etc ( or could be other things like property, gold etc ). The value of your investments can go down as well as up.

    Generally savings are better for the short term and investments for the long term.

    The One Family JISA is based on investments and is not a savings account, despite the confusing phrases they use on their website such as ' Start saving today' 
    Junior ISA - Child Stocks & Shares ISA | OneFamily

    The 1.5% annual charge is high, and I think in general the investment performance is not great.

    How old are the children now? What do you think they will do when they get their hands on the money at 18? 
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