Junior ISAs – a great way to invest for children

If you’re looking to invest for a child, opening a Junior ISA could be a good place to start. They are one of the easiest ways to invest for children and could help towards higher education and housing costs when they become an adult.

What you need to know about Junior ISAs

  • As with regular ISAs, Junior ISAs are free from Income Tax and Capital Gains Tax, making them a tax-efficient way to save and invest
  • Like adults, children have an annual ISA allowance. This is currently £4,368 (2019/20)
  • There are two types of Junior ISAs available – cash and Stocks & Shares Junior ISAs. A child can have both but the combined total of the contributions into both types cannot exceed the annual allowance
  • Junior ISAs are available to any child under 18 who is resident in the UK and they can be opened from birth
  • The child cannot access the money in the Junior ISA until they are 18
  • Only the child’s parents or guardians can open the Junior ISA, but other people can make contributions into it
  • The account is held in the child’s name but the person who opens the account makes all the decisions about where to invest the contributions
  • When the child reaches 18, the Junior ISA will become a standard ISA and they will have full access to the account
  • If a child has a Child Trust Fund, this can now be transferred into a Junior ISA. Please note that a child cannot have a Child Trust Fund as well as a Junior ISA

Introducing the Junior ISA from Bestinvest

Through our Bestinvest brand, we offer Stocks & Shares Junior ISAs to children. When choosing the Bestinvest Junior ISA, you’ll benefit from:

  • An award-winning service. Bestinvest won Best Online Junior Stocks & Shares ISA Provider at the YourMoney.com Awards in 2018
  • Low fees, as Bestinvest doesn't charge to open a Junior ISA or transfer in other accounts. The service fees are just 0.4% a year
  • A huge choice funds, with more than 2,500 in total, together with hundreds of investment trusts and ETFs and almost all UK shares, but remember that the value of investments can fall as well as rise and you can get back less than originally invested
  • An online account that’s quick to open and easy to manage along with a friendly and knowledgeable telephone team for times when you want to speak to someone
  • Lots of helpful investment tips and ideas to help you make the most of these investments

Open the Bestinvest Junior ISA

Speak to us

If you have any questions about Junior ISAs or would like more information on opening one with Bestinvest, please contact us by emailing contact@tilney.co.uk or call 020 7189 9999.

This article does not constitute personal advice. If you are in doubt as to the suitability of an investment/product please contact a financial adviser

 

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