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    • april87
    • By april87 19th Jun 17, 4:47 PM
    • 345Posts
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    april87
    Child Savings
    • #1
    • 19th Jun 17, 4:47 PM
    Child Savings 19th Jun 17 at 4:47 PM
    We are looking to open a savings account/junior ISA for our child and wondered what was considered best plan of action.

    Would it be best to open a savings account or a junior ISA. Ideally we would be saving about 40 a month, and would like our son to have access to this once he is 18. We would also use it for cash gifts received from family members. I have read the guides on MSE regarding child savings, and an ISA appears to be ideal as it is locked till he is 18. Is it like a regular ISA where we can pay a certain amount in each month up to the 4128 per year?

    Thanks in advance.
Page 1
    • eskbanker
    • By eskbanker 19th Jun 17, 4:57 PM
    • 7,167 Posts
    • 7,617 Thanks
    eskbanker
    • #2
    • 19th Jun 17, 4:57 PM
    • #2
    • 19th Jun 17, 4:57 PM
    Is it like a regular ISA where we can pay a certain amount in each month up to the 4128 per year?
    Originally posted by april87
    Unless otherwise stated in any product-specific Ts & Cs (and I'm not aware of any that affect this) you can pay in whatever you like whenever you like, subject to the annual allowance per tax year.
    • Reaper
    • By Reaper 19th Jun 17, 5:10 PM
    • 6,253 Posts
    • 4,504 Thanks
    Reaper
    • #3
    • 19th Jun 17, 5:10 PM
    • #3
    • 19th Jun 17, 5:10 PM
    Yes a JISA is your best bet. It will automatically convert to a regular ISA when he reaches 18 and takes control.

    It sounds like you are thinking of a savings type account. You should also consider the "stocks and shares" version as over the long term the stock market tends to perform considerably better, even taking into account crashes every few years. But up to you.
    • MatthewAinsworth
    • By MatthewAinsworth 19th Jun 17, 5:17 PM
    • 3,053 Posts
    • 1,199 Thanks
    MatthewAinsworth
    • #4
    • 19th Jun 17, 5:17 PM
    • #4
    • 19th Jun 17, 5:17 PM
    I agree with s&s version, child doesn't need immediate access to cash, can lock in
    • xylophone
    • By xylophone 19th Jun 17, 5:58 PM
    • 25,374 Posts
    • 14,970 Thanks
    xylophone
    • #5
    • 19th Jun 17, 5:58 PM
    • #5
    • 19th Jun 17, 5:58 PM
    https://www.gov.uk/junior-individual-savings-accounts/overview

    Subject to the limit on annual contribution, the allowance can be split, if preferred, between cash and stocks and shares.

    Perhaps the parents would contribute the s&s element while gifts from relatives could go into the cash element.

    http://monevator.com/how-to-invest-for-children/

    https://www.charles-stanley-direct.co.uk/Our_Services/JISA/?utm_source=adwords&utm_medium=cpc&utm_campaign=CS %20%20D_Brand&gclid=CIOO3aeEytQCFeK37QodSRINRw

    https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html
    • april87
    • By april87 19th Jun 17, 6:58 PM
    • 345 Posts
    • 162 Thanks
    april87
    • #6
    • 19th Jun 17, 6:58 PM
    • #6
    • 19th Jun 17, 6:58 PM
    Xylophone good idea. I will look at the links and talk it through with the OH.

    Thanks it def looks like junior isa is the way forward
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