Childrens savings

refluxer

Pat456bikes said:

Apologies thought junior isa would be like ordinary isa where different issues end but I suppose that's because I've always done fixed rate isas. So with variable junior ISA any relatives and friends can put in any amounts at any time?

Yes - a Junior Cash ISA works just like an easy access account as far as deposits are concerned, in that anyone with the account details can pay into it at any time. It's just up to you to ensure that this doesn't exceed £9k each tax year.

The main (important !) restriction is that the money can only be accessed by the child and only when they reach the age of 18. They are given the option to manage the account from the age of 16 but can't access the money until they are 18.

pjs493

My children both have S&S JISAs with NatWest. Currently seeing over 7% growth. They each have a child saving account that family members have the bank details for. Following birthdays, Christmas, etc, any money deposited in the savings account gets moved by me into their JISAs. There’s a bit of interest that has accrued in those accounts from various deposits that I’ve just left in there. The JISAs are getting a much better return than their savings would and the money in their JISAs will be locked away until they’re 18.

I also have a standing order set up for a monthly amount that goes into each of their JISAs. Additionally, I make extra ad hoc payments into their JISAs for various random reasons; eg I recently put extra money in following a compensation payment I received and decided to divide it between the children rather than keep it for myself. 

Albermarle

Pat456bikes said:

Thankyou. The parents of the baby are wanting me to sort out best place for these gifts and as we well may set up a junior isa ourself for the child probably not the best course of action to set up another and have the spectre of the 9000 limit to remember. Back to square 1!

Especially for a baby, a Junior Stocks and shares ISA is almost certainly going to give a better return over 18 years than a Junior Cash ISA.

xylophone

we well may set up a junior isa ourself for the child 

You are the grandparents and (presumably) not guardians with parental responsibility.

https://www.gov.uk/junior-individual-savings-accounts

Parents or guardians with parental responsibility can open a Junior ISA and manage the account, but the money belongs to the child.

refluxer

Pat456bikes said:

Thankyou. The parents of the baby are wanting me to sort out best place for these gifts and as we well may set up a junior isa ourself for the child probably not the best course of action to set up another and have the spectre of the 9000 limit to remember. Back to square 1!

It's worth noting that a child can only have one Junior Cash ISA and one Junior S&S ISA at any one time.

I missed this message when I was typing my previous reply - as mentioned above, only a parent or legal guardian can open a JISA for their own child and it's up to them to ensure the £9k limit is adhered to (I'd presumed you were the parent).

Bridlington1

eskbanker said:

https://www.moneysavingexpert.com/savings/junior-isa/
https://www.moneysavingexpert.com/savings/child-savings-tax-free/

Or for a more detailed list see:
https://moneyfactscompare.co.uk/isa/junior-isas/

If the parents live in certain areas they can beat 4.95% quite comfortably. Beverley BS have a JISA at 5.5% for those who live in HU, YO, DN postcodes and Bath BS have one at 5.49% for existing members of 1+ years and those who live, work or study in Bath.

Pat456bikes

Thank all.
We are the grandparents. 
Was tricky getting my head round using the JISA, whether cash or stocks and shares  really just as a savings account the child can't access until they are 18
Presume like with other variable cash   ISAs if the rate where invested goes down you can just transfer to a better one?
Currently cash JISAs interest rate less than the regular children's savings accounts.
The childs parents are having to renegotiate mortgage fixed rate this summer and we may help them so not sure how much we want to invest for child.
Think will set up a children's regular saver account for them currently and drip feed gifts from others plus us into there.
Then look at setting up JISA before end of 202425 tax year when we know what we could afford to  put in there. Including balance on regular saver account..if we can get set up but pre 5/04/2024!
Many thanks fior everyone's help

Pat456bikes

By the way when I say set up JISA later I mean support the parents to apply for one on  their child's behalf but us transfer the majority of the  funds in

xylophone

 you can just transfer to a better one?

Check that the new provider accepts transfers in and then ask new provider to organise.

elkiedee

If money is being moved from non-ISAs to a JISA, it's not actually a "transfer" in that sense, and also the banks won't be organising it - OP will be paying in presumably via a current account whether from income or their own savings.