Holding dual child cash & stocks junior ISAs

maninholland

Hi, hoping for some help here please. We have junior cash ISAs for our two daughers, which both have a substantial amount in. Now we're thinking of stopping contributing to them, and instead letting the balances rise with annual interest. The reason is that we'd like to open for them each a stocks & shares junior ISA, and make our annual contributions into those. This is partly driven by the success of our own (as parents) individual S&S ISAs, which have provided very good returns over the past 15 years. But irrespective of what we choose to contribute, and I am aware of the limits, I am not actually 100% sure if the children can hold one of each concurrently. Can anyone point me to a definitive official gov.uk page which explains it? Any help much appreciated. 

eskbanker

maninholland said:

But irrespective of what we choose to contribute, and I am aware of the limits, I am not actually 100% sure if the children can hold one of each concurrently. Can anyone point me to a definitive official gov.uk page which explains it? Any help much appreciated. 

It's stated right on the main high-level page for JISAs:

How Junior ISAs work

There are 2 types of Junior ISA:

• a cash Junior ISA, for example you will not pay tax on interest on the cash you save
• a stocks and shares Junior ISA, for example your cash is invested and you will not pay tax on any capital growth or dividends you receive

Your child can have one or both types of Junior ISA.

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

It would be unusual to start with cash JISAs at an early age and then move to S&S ones later (when there's less time for investment volatility to flatten out), so don't be swayed by recency bias that might imply that investing only goes in one direction!  Depending on their ages, it might make sense to transfer the existing cash JISAs into S&S ones, and then direct further contributions into cash ones....

Keep_pedalling

How old are your children?