Options on One Family ISA after my sons 18

lindseychm

My son turned 18 in November, he hasnt done anything with his money as yet.  I wondering whether he should invest some in their stocks and shares ISA or if theres a better option?  

He will probably draw some to a short term savings account and invest around £3k in a long term one, any suggestions please as its something I dont know much about?

masonic

He could remove what he wants as short term savings, then transfer the ISA to one of the popular low cost S&S ISAs. Which one would be best would depend on the amount and how he intended to use the account going forward.

incus432

I had never heard of One Family but having looked at their website they seem to have VERY high charges. In the JISA they charge 1.5% for both their funds, and although I haven't checked it is highly unlikely they do better than a global tracker for which you'd pay 0.1-0.2%. Their adult ISA charges you 1.1%.  Look elsewhere, there are plenty of options. 

Alexland

Onefamily might be member owned and sell themselves as wholesome but their products are very expensive with varying degrees of poor investment outcomes. For the money that is going to remain invested he should assess the market and pick something better.

Albermarle

incus432 said:

I had never heard of One Family but having looked at their website they seem to have VERY high charges. In the JISA they charge 1.5% for both their funds, and although I haven't checked it is highly unlikely they do better than a global tracker for which you'd pay 0.1-0.2%. Their adult ISA charges you 1.1%.  Look elsewhere, there are plenty of options. 

They are similar to Friendly societies ( not sure if they are one ) . They also sell themselves as small, family friendly but the products are expensive and lacking in choice.

lindseychm

The money has only been with One Family as he was lucky enough to be born in the years where the government started a Child Trust Fund and we carried on paying into it.

incus432

lindseychm said:

The money has only been with One Family as he was lucky enough to be born in the years where the government started a Child Trust Fund and we carried on paying into it.

I understand, son was also born in that era.  We opened an account with Britannia then moved to F&C for shares account, then later into Vanguard JISA. You can do a lot better now - that 1 to 1.5% in charges is a compounding drag on returns

lindseychm

Thanks for your replies.  Regarding the different companies do they only differ in annual charges?  I saw a recommendation for Nutmeg on here with 'No management fee in year 1 for newbies via our link, then tiered: 0.45%-0.75%/yr.'  Does that sound a god deal?

xylophone

He might prefer to transfer the whole to an adult cash ISA as a short term measure?

This would give him time to consider his options.

lindseychm

xylophone said:

He might prefer to transfer the whole to an adult cash ISA as a short term measure?

This would give him time to consider his options.

Thanks, yes that might be an idea.  Ive looked up and Moneybox has one at 5% which seems the best around