junior ISA

craig1194

I put £95 into a junior ISA for my daughter, on the website it has tool where you can increase the monthly contribution or pay in a one off figure and it gives you a projected value ,the current figure is £22,761.31 for the continued £95 per month. I was looking to make a one off payment of £7000 to increase her projected value but when I put this figure in it only increases this amount to £23,879.09 ,so basically I would be investing  £7000 only to potentially increase the projected value by £1117.78,ive rang the company the ISA is with and even they cant explain it, surely I'm over looking something here, I put another figure in of £400 into the tool to see what that projected and it was the same as putting £7000 in give or take a few quid, it seems the more you put in the less you get back, can somebody please put my mind at rest before I potentially lose a lot of money ,thank you in advance for your help, craig

eskbanker

Which provider is this?  Even if it's a S&S JISA rather than a cash one, the projections shouldn't anticipate losses when increasing the value of contributions, but in any case these projections will be entirely synthetic anyway (rather than being a forecast as such) and you could just work it out yourself if you use the same assumptions for growth rates, etc.

Alexland

Sounds like an issue with the tool you are using whatever it is.

craig1194

its with onefamily junior isa, just seemed strange when increasing the ISA by £7k the projected value didn't seem to move much in comparison to just continuing with the regular monthly payments, thanks for your help  

Alexland

I'd suggest using another tool and a better provider. Onefamily are high cost at 1.5% pa and very mediocre fund performance - certainly not somewhere you would want to use for meaningful amounts of money or anything really.

Fidelity and HL generously have zero platform fees on JISAs if investing in funds and give access to multi asset and index tracker funds from a wide variety of fund managers some of which cost as little as 0.1% pa. Fund choices on these platforms include the Vanguard Lifestrategy and HSBC Global Strategy series both around 0.2% pa.

Better investments at significantly lower costs - what's not to like?

HL even have a few handy regular investing calculators on their website:
https://www.hl.co.uk/tools/calculators/regular-investing-calculator

QrizB

Alexland said:

I'd suggest using another tool and a better provider. Onefamily are high cost at 1.5% pa and very mediocre fund performance - certainly not somewhere you would want to use for meaningful amounts of money or anything really.

Agreed. Onefamily inherited my kids CTFs from whichever bank or BS we initially chose, and once we realised how they were handling them we switched away.

Alexland

QrizB said:

Agreed. Onefamily inherited my kids CTFs from whichever bank or BS we initially chose, and once we realised how they were handling them we switched away.

I actually opened a Onefamily JISA (already knowing they would be a waste of space) when my youngest was born but only because they were offering something like £50 Topcasback for a £100 contribution. As soon as the cashback went payable I transferred out before making further contributions.

When I look now at the rubbish 5 year performance of their two JISA fund choices and consider the great returns my kids have made at Fidelity it was clearly the right decision not that I ever had any doubt at any point although admittedly I ran the account at a higher risk profile. I think the problem with the Onefamily funds is not just the high fees but getting bogged down in extremely poor asset allocation choices.

craig1194

thank you for the advice

craig1194

Thanks for information, is it best to drip feed into an ISA or pay a lump sum

Alexland

craig1194 said:

Thanks for information, is it best to drip feed into an ISA or pay a lump sum

On average it's better to pay money in as soon as possible as markets generally go up (which is why you are investing)  but you might get unlucky and get a crash as soon as you have contributed a lump sum but then that could also happen at the end of your drip-feed. If drip-feeding was better then those of us with money invested would keep withdrawing it to drip-feed it back in.