Junior ISA or something else?

Junior ISA or something else?

Author
Discussion

Otispunkmeyer

Original Poster:

12,557 posts

154 months

Tuesday 27th October 2020
quotequote all
Hi All

Wanting to set up a savings account for our new born. Was thinking of just setting up a Junior ISA with Vanguard as thats where my ISA is at the moment so I am familiar with what they offer.

But some have warned me off using the JISA because when she turns 18, its hers to do with as she pleases. Now the money would be for university maybe or perhaps to put towards a house or something. Of course, its nice to think that come adult-hood, we've raised someone sensible, but equally she might be the "coke and hookers" type and piss it up the wall.

What are some other options?

I didn't to do just cash savings or cash ISA's because the interest rates are dire.

Mr Pointy

11,146 posts

158 months

Tuesday 27th October 2020
quotequote all
Open a SIPP for her - that'll stop her getting her hands on it!

You could put the money in a GIA & while it's subject to CGT if you are careful about churning it over every year you might be able to mitigate that, depending on your other CGT gains in the year.

fourstardan

4,188 posts

143 months

Tuesday 27th October 2020
quotequote all
Whats the rough sort of YoY growth of a Junior ISA likely to be?

Just had little one last week so thinking about this now.

xeny

4,263 posts

77 months

Tuesday 27th October 2020
quotequote all
Depends on what you hold in the JISA .

For a broad equity tracker, maybe 8% nominal, 5% real is a reasonable estimate over the long term.

Pick a specific fund or company right, and the sky is the limit. Pick badly, and you'll do less well.