Any recommendations on kids ISAs? Looking for a good app (love the control you get in the freetrade isa). Also really wondering if you recommend kids isa at all or should I just put in my own isa and sort it all out when we decide to hand it over? I don’t save anywhere near my own threshold a year so wonder if that’s the best option.
Would love to hear anyone’s experiences in this area.
Possibly not the best option for you, then, if you’re not looking at paying over the tax threshold. You’d get more interest from a normal kids savings account. Best rate for a Junior ISA at the moment appears to be under 3%, while kids savings accounts can be found at 4% and 3.5% for regular savers (monthly limits on deposits) and 3% for easy-access (no deposit limit).
As ever, MSE guides are very helpful, I find - junior ISAs and savings accounts.
I would perhaps avoid the “sticking it in own ISA” route because you don’t know what might happen in the future, and events might transpire that your kids don’t get the money. That’s a large advantage of separate savings accounts or ISAs, I feel - anything happens to you, money belonging to your kids is ringfenced and they cant’t lose it.
That’s super helpful, thanks. I hadn’t even considered a savings account - I thought the interest rates would be similar to a regular savings account so thanks for the pointer.
If you’re staring early, because of the ~18 year timeline involved, a Stocks & Shares JISA invested to track the market as a whole will very likely beat any other form of saving option in terms of returns, with low risk.
I’m using Vanguard for my JISA, investing in the global all cap. For a (perhaps meaningless given the short time scale) point of reference, after 2 years my internal rate of return is over 25%. And that’s having suffered the effects of Covid on the stock market.
My strategy is a Savings account family can pay into whatever they want. Then I move it into a stocks and shares every time it hits £500.
The Vanguard is good, for example, though no app like Freetrade… but it only accepts card payments for topups, not direct bank transfers, which is weird and annoying.