HL Junior ISA vs Junior Investment Account

[jinkster]

Hello all,

Newborn so apologies for the silly questions.

Junior Stocks Shares ISA vs Junior Investment Account

https://www.hl.co.uk/investment-services/investing...

https://www.hl.co.uk/investment-services/junior-is...

I am a little confused between the 2 of them - seem pretty identical with the exception of the tax.

ISA - tax free (Will this effect a newborn?)

Does a child have a personal tax allowance (circa £11,000).

Thanks in advance for the help.

[xeny]

ISA - they may not have to worry about tax now, but after 18 years growth you'd hope it will be a different matter.

[Kickstart]

The other advantage with a Junior ISA is that it can be converted into an adult ISA at 18 unlike a regular investment acct
Personally I am a big fan of Vanguard much cheaper fees

[richatnort]

Sorry to butt in but we've got a savings account for our daughter with about 2k in it at the moment. It's with barclays and doing nothing really.

Am I best looking at a HL or Vanguard s&s isa and adding money into that?

[Mr Pointy]

richatnort said:

Sorry to butt in but we've got a savings account for our daughter with about 2k in it at the moment. It's with barclays and doing nothing really.

Am I best looking at a HL or Vanguard s&s isa and adding money into that?

There are plenty of alternatives, but there is a difference between Vanguard & HL. With Vanguard you can only invest in their funds but with HL there is a choice of hundreds of different providers & funds. This coice comes at a cost though & the HL charges are higher, & can be much higher.

Personally I got fed up of the HL charges & now have a Vanguard ISA & GIA. You can open either an ISA for yourself or a JISA for your daughter (or both of course).

[richatnort]

Mr Pointy said:

There are plenty of alternatives, but there is a difference between Vanguard & HL. With Vanguard you can only invest in their funds but with HL there is a choice of hundreds of different providers & funds. This coice comes at a cost though & the HL charges are higher, & can be much higher.

Personally I got fed up of the HL charges & now have a Vanguard ISA & GIA. You can open either an ISA for yourself or a JISA for your daughter (or both of course).

Thanks for the advice Pointy. Personally I don't imagine I am going to really be changing it drastically I'm probably going to pop it in and change it maybe once every 3 years. I just want a fund that's going to do better than savings so even the ftse 100 is going to do better at the minute.

[bitchstewie]

richatnort said:

Thanks for the advice Pointy. Personally I don't imagine I am going to really be changing it drastically I'm probably going to pop it in and change it maybe once every 3 years. I just want a fund that's going to do better than savings so even the ftse 100 is going to do better at the minute.

FWIW don't put it in the FTSE 100.

If you do anything look globally IMO.

[Burwood]

bhstewie said:

richatnort said:

Thanks for the advice Pointy. Personally I don't imagine I am going to really be changing it drastically I'm probably going to pop it in and change it maybe once every 3 years. I just want a fund that's going to do better than savings so even the ftse 100 is going to do better at the minute.

FWIW don't put it in the FTSE 100.

If you do anything look globally IMO.

This, and don't go via HL. you will pay over the odds in fees and over 25 years those extra fees could be 100k difference to the fund! Pick a fund manager like fidelity/vanguard and go direct. You want a JISA stocks and shares account. A Junior investment account has no tax wrapper so zero point

Edited by Burwood on Sunday 14th November 17:57