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Junior ISA annual maintenance fee
Comments
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My LO is 11 years old and planning to use as tuition fee, just wanted a simple JISA without much risk.adding screenshot.Albermarle said:OP - in summary.
You are currently paying 1.5% for the SF JISA, which is high ( typical for friendly societies)
A JISA with Fidelity or HL will have no platform charges for operating the JISA, but the investments you hold in the JISA ( which you will have to pick yourself) will have a charge. This could be from 0.1% to 1.6% depending on which investments you pick.
If you are unfamiliar with investing, then posters on here will try and point you in the right direction. The age of the child involved is an important factor, as the longer it is until they are 18, the more risk you can take with the investment.
Thanks for advice.
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The JISA itself has no risk, it is just somewhere that is tax friendly to hold investments.sheebs_2 said:
My LO is 11 years old and planning to use as tuition fee, just wanted a simple JISA without much risk.adding screenshot.Albermarle said:OP - in summary.
You are currently paying 1.5% for the SF JISA, which is high ( typical for friendly societies)
A JISA with Fidelity or HL will have no platform charges for operating the JISA, but the investments you hold in the JISA ( which you will have to pick yourself) will have a charge. This could be from 0.1% to 1.6% depending on which investments you pick.
If you are unfamiliar with investing, then posters on here will try and point you in the right direction. The age of the child involved is an important factor, as the longer it is until they are 18, the more risk you can take with the investment.
Thanks for advice.
The risk and the potential growth come from the investments you choose in the JISA.
Scottish Friendly make it easy by only having one investment available. However the charges are high, and typically the investment does not perform that great.1 -
Surely it's the 1.5% ongoing recurring cost listed 'for managing your investments', albeit this isn't literally 'maintenance' as such? That would be circa £100 on OP's £7K holding, i.e. about the £8/month mentioned.I thought it might be that, but the OP said there was no mention of a maintenance fee and suggested it was introduced later. However,the 1.5% AMC has been in place from the very start (and is pretty much consistent across all their range).
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
I had this from 2017 as Cash ISA - I think. Not sure if I can check this.dunstonh said:Surely it's the 1.5% ongoing recurring cost listed 'for managing your investments', albeit this isn't literally 'maintenance' as such? That would be circa £100 on OP's £7K holding, i.e. about the £8/month mentioned.I thought it might be that, but the OP said there was no mention of a maintenance fee and suggested it was introduced later. However,the 1.5% AMC has been in place from the very start (and is pretty much consistent across all their range).
Last year split into some funds and that might have triggered this annual fee !
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Yes, JISA charges won't be the same for investing as for cash, they're completely different activities, so if you chose to invest last year (instead of staying in cash) then that will indeed have triggered the charges listed in their documentation.sheebs_2 said:
I had this from 2017 as Cash ISA - I think. Not sure if I can check this.dunstonh said:Surely it's the 1.5% ongoing recurring cost listed 'for managing your investments', albeit this isn't literally 'maintenance' as such? That would be circa £100 on OP's £7K holding, i.e. about the £8/month mentioned.I thought it might be that, but the OP said there was no mention of a maintenance fee and suggested it was introduced later. However,the 1.5% AMC has been in place from the very start (and is pretty much consistent across all their range).
Last year split into some funds and that might have triggered this annual fee !1
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