Junior ISA or regular ISA
Discussion
Our kids are 10 & 6 now, and starting a savings account for them is probably something I should have done sooner, but there we are.
We're wanting to save £50-£100 per month per child. My question is, what are the pros/cons of starting a Junior ISA for each of them vs just opening one in my wife's name and putting the money in there?
I have a S&S ISA in my name, but my wife doesn't have one yet. Tbh I doubt we'd ever reach a point where we'd need to max out both of our ISA allowances as I also make additional pension contributions at work as part of our long term savings goals, so I don't see that being an issue.
Thoughts?
We're wanting to save £50-£100 per month per child. My question is, what are the pros/cons of starting a Junior ISA for each of them vs just opening one in my wife's name and putting the money in there?
I have a S&S ISA in my name, but my wife doesn't have one yet. Tbh I doubt we'd ever reach a point where we'd need to max out both of our ISA allowances as I also make additional pension contributions at work as part of our long term savings goals, so I don't see that being an issue.
Thoughts?
From what I understand the only real difference for what you're wanting to do is that a Junior ISA legally becomes your childs at age 18. They can they do what they want with it. If you invest into your wife's ISA allowance it's legally hers so she can choose what happens to it.
Beyond that you can't save as much into a Junior ISA - £9k I think vs £20k for an Adult ISA. But if you're looking at £100-£200 a month that doesn't impact you.
Beyond that you can't save as much into a Junior ISA - £9k I think vs £20k for an Adult ISA. But if you're looking at £100-£200 a month that doesn't impact you.
Darlo74 said:
From what I understand the only real difference for what you're wanting to do is that a Junior ISA legally becomes your childs at age 18. They can they do what they want with it. If you invest into your wife's ISA allowance it's legally hers so she can choose what happens to it.
Beyond that you can't save as much into a Junior ISA - £9k I think vs £20k for an Adult ISA. But if you're looking at £100-£200 a month that doesn't impact you.
The fact it becomes theirs at 18 is one of the reasons we're considering saving into my wife's name instead. I was once 18, I know it's not the best time to be handed a wad of cash. It might be better saved until they've finished uni, or when they want to buy a house etc.Beyond that you can't save as much into a Junior ISA - £9k I think vs £20k for an Adult ISA. But if you're looking at £100-£200 a month that doesn't impact you.
So am I right in thinking basically the only difference is the Junior ISA legally becomes their money at 18, whereas one in my wife's name would legally be hers, until we did something else with it?
skinnyman said:
Darlo74 said:
From what I understand the only real difference for what you're wanting to do is that a Junior ISA legally becomes your childs at age 18. They can they do what they want with it. If you invest into your wife's ISA allowance it's legally hers so she can choose what happens to it.
Beyond that you can't save as much into a Junior ISA - £9k I think vs £20k for an Adult ISA. But if you're looking at £100-£200 a month that doesn't impact you.
The fact it becomes theirs at 18 is one of the reasons we're considering saving into my wife's name instead. I was once 18, I know it's not the best time to be handed a wad of cash. It might be better saved until they've finished uni, or when they want to buy a house etc.Beyond that you can't save as much into a Junior ISA - £9k I think vs £20k for an Adult ISA. But if you're looking at £100-£200 a month that doesn't impact you.
So am I right in thinking basically the only difference is the Junior ISA legally becomes their money at 18, whereas one in my wife's name would legally be hers, until we did something else with it?
JISA, you can not withdraw the money, only move to another asset manager.
Limits are 20k/9k as stated
skinnyman said:
Darlo74 said:
From what I understand the only real difference for what you're wanting to do is that a Junior ISA legally becomes your childs at age 18. They can they do what they want with it. If you invest into your wife's ISA allowance it's legally hers so she can choose what happens to it.
Beyond that you can't save as much into a Junior ISA - £9k I think vs £20k for an Adult ISA. But if you're looking at £100-£200 a month that doesn't impact you.
The fact it becomes theirs at 18 is one of the reasons we're considering saving into my wife's name instead. I was once 18, I know it's not the best time to be handed a wad of cash. It might be better saved until they've finished uni, or when they want to buy a house etc.Beyond that you can't save as much into a Junior ISA - £9k I think vs £20k for an Adult ISA. But if you're looking at £100-£200 a month that doesn't impact you.
So am I right in thinking basically the only difference is the Junior ISA legally becomes their money at 18, whereas one in my wife's name would legally be hers, until we did something else with it?
I have a similar thing for my daughter whose 5. Been paying in around £100/month since she was born and any money that relatives gave us when she was born went in there as well. Plan is that she can use it towards a house deposit once shes older.
It's currently just in a regular ISA but I'm wondering whether to move it in to a S+S ISA so it can grow over the next 15+ years? If not, whats the best option for steady growth over a long term?
It's currently just in a regular ISA but I'm wondering whether to move it in to a S+S ISA so it can grow over the next 15+ years? If not, whats the best option for steady growth over a long term?
T_S_M said:
I have a similar thing for my daughter whose 5. Been paying in around £100/month since she was born and any money that relatives gave us when she was born went in there as well. Plan is that she can use it towards a house deposit once shes older.
It's currently just in a regular ISA but I'm wondering whether to move it in to a S+S ISA so it can grow over the next 15+ years? If not, whats the best option for steady growth over a long term?
S&P500 has grown around 9.5% annually for around 20yrs, even adjusted for inflation it's nearly 7%.It's currently just in a regular ISA but I'm wondering whether to move it in to a S+S ISA so it can grow over the next 15+ years? If not, whats the best option for steady growth over a long term?
However, given the US's current national debt, and the fact it's only going one way, I've no idea what the future holds for the country.
I'd personally split the money across 10 different funds/ETFs so the risk is spread. 1 US based, 1 Europe, emerging markets etc.
menousername said:
Been looking at this recently also. Anyone using a straight Cash Junior ISA that they can recommend?
Providers seem to be thin on ground, and from the few that there are the best rates are with Building Societies that offer postal / branch access only, not online.
Coventry BS. 4.95%. Providers seem to be thin on ground, and from the few that there are the best rates are with Building Societies that offer postal / branch access only, not online.
No real reason to keep looking at it, it’s locked away until they are 18 so you might as well get the best rate you can.
skinnyman said:
The fact it becomes theirs at 18 is one of the reasons we're considering saving into my wife's name instead. I was once 18, I know it's not the best time to be handed a wad of cash. It might be better saved until they've finished uni, or when they want to buy a house etc.
So am I right in thinking basically the only difference is the Junior ISA legally becomes their money at 18, whereas one in my wife's name would legally be hers, until we did something else with it?
and you can't transfer her ISA to them....i.e. you will need to cash it out when the time comes.So am I right in thinking basically the only difference is the Junior ISA legally becomes their money at 18, whereas one in my wife's name would legally be hers, until we did something else with it?
duckson said:
Coventry BS. 4.95%.
No real reason to keep looking at it, it’s locked away until they are 18 so you might as well get the best rate you can.
Appreciate the adviceNo real reason to keep looking at it, it’s locked away until they are 18 so you might as well get the best rate you can.
Thought I would report back in case it helps anyone. In the end I opted for Tesco bank @ 4% as I like being able to view it on an app, rightly or wrongly, and that was the best rate I could find.
Their app is adequate and no frills which suits me. The ISA very easy to set up and the paperwork arrived within two days.
Again rightly or wrongly I will probably do a 70/30 ish cash vs stocks & shares split of ISA contributions. 30% gamble on higher than interest rate growth via S&S. Knowing me they will probably tank lol
thebraketester said:
Has anyone opened a JISA with RBS? I am having real trouble getting them to give me the details for the account so that family can contribute. Nothing shows up on the online savings portal thing. Well over an hour deep in phone calls to them to try and get it out of them.
Thanks
RBS are pretty high fees - currently trying to move the JISA away from themThanks
halo34 said:
thebraketester said:
Has anyone opened a JISA with RBS? I am having real trouble getting them to give me the details for the account so that family can contribute. Nothing shows up on the online savings portal thing. Well over an hour deep in phone calls to them to try and get it out of them.
Thanks
RBS are pretty high fees - currently trying to move the JISA away from themThanks
I set up a couple fo JISAs with Hargreaves and Lansdown for my kids when they were young. I pickded a Multi-Manager balanced fund, my thinking was to balance exposure across the world.
They also have a kids cash savings account also.
The kids are now 9 & 11, we talk about money, they go to the bank to cash in any money they recieve. They are aware of their investment account and I talk to them about them taking over the batten when they start earning to allow their investments to grow. I have talked about it not becoming something they cash in to buy a house but to build little and often into something that could provide them an income in their lifetime. Fingers crossed they don't go mad at 18.
Even £100 invested every month from a child's young age, that they continue, could beome a substantial sum come their 60th birthday. £100 isn't going to derail any of their life time plans in reality.
They also have a kids cash savings account also.
The kids are now 9 & 11, we talk about money, they go to the bank to cash in any money they recieve. They are aware of their investment account and I talk to them about them taking over the batten when they start earning to allow their investments to grow. I have talked about it not becoming something they cash in to buy a house but to build little and often into something that could provide them an income in their lifetime. Fingers crossed they don't go mad at 18.
Even £100 invested every month from a child's young age, that they continue, could beome a substantial sum come their 60th birthday. £100 isn't going to derail any of their life time plans in reality.
Edited by VeeReihenmotor6 on Thursday 26th September 11:31
My boys are 8 and 5, and I’m glad that I’ve been putting money into a separate fund in my S&S ISA, rather than a JISA, as I expect they will be like I was at 18 - not ready ti be sensible with a load of money.
My wife has been paying a similar amount into savings accounts in their names, so they will get some money before they turn, but not as much.
My wife has been paying a similar amount into savings accounts in their names, so they will get some money before they turn, but not as much.
thebraketester said:
halo34 said:
thebraketester said:
Has anyone opened a JISA with RBS? I am having real trouble getting them to give me the details for the account so that family can contribute. Nothing shows up on the online savings portal thing. Well over an hour deep in phone calls to them to try and get it out of them.
Thanks
RBS are pretty high fees - currently trying to move the JISA away from themThanks
A huge FYI.... RBS do not provide means to enable anyone else but the linked account holder to add to a JISA. Worth nothing. They have been utterly useless on the phone.
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