Isa for baby?

[jmsgld]

Looking to set up an isa for my 11 month old son on behalf of grandparents.

He already has one from other grandparents with HL Fundsmith, so someone else.

Will be £1k annually on birthday until 18 years old, no access until then.

I have a S&S Isa with Moneyfarm but nothing else.

Ideally something a little different to the HL one to spread risk.

Any tips?

Thanks, James

Edited by jmsgld on Monday 30th July 16:02

[anonymous-user]

Don't know about ISAs, but you could consider starting a junior pension with HL as you get tax rebate on up to (I think) £3600 a year, so for us that was an instant 20% bonus on what we paid in.

I would be thinking twice whether I wanted my son to have immediate and unfettered access to ~£30k on his 18th birthday!

[BluePurpleRed]

If gifted in trust from the grand parents then a normal investment account can be used and your childs taxation levels will be used.

I have started to do this as a JISA unlike a normal ISA cannot be dipped into. SO I would alternate... one pot for 18+ and one for things that you may want to dip into (with the GPs blessing)

School trips, music lessons, bike etc can be out of this fraction if desired.

Only things you contribute directly are taxed on your tax %. So its better if you do the JISA and they do another account, esp if you want balance before 18. Driving lessons etc.

[JapanRed]

I opened an account for my newborn in January this year and the highest earning account was the kids account from Halifax paying 4%. Higher than any ISA I could find.

[InitialDave]

jmsgld said:

Looking to set up an isa for my 11 month old son on behalf of grandparents.

He already has one from other grandparents

ISA ISA baby?

[Craikeybaby]

Can kids pay into 2 ISAs at the same time? I'm pretty sure adults can't.

what about using two different funds in his existing ISA?

[Jimmy Recard]

Craikeybaby said:

Can kids pay into 2 ISAs at the same time? I'm pretty sure adults can't.

what about using two different funds in his existing ISA?

I just read the OP and came down the page to say this.

Unless you wanted a normal cash ISA as well as the stocks and shares one (I think that Junior ISA interest rates are normally much better than ISA rates so it could be worth it to keep it safe and guaranteed)