Best Junior ISA funds for those under the age of 18
Navigating the world of finance for the younger generation can be a daunting task, especially when considering the best junior ISA funds available.
As your child approaches their 18th birthday, the options to invest in the stock market or transfer a junior stocks and shares ISA become pressing decisions.
It’s also worth considering if you should shift a child trust fund into a junior ISA, ensuring they get the most out of their investments.
Whether you’re pondering over an annual junior ISA, deciding which type of junior ISA suits best, or weighing the pros and cons between junior ISA accounts and a cash junior ISA, it’s essential to make informed choices.
Moreover, understanding when and how to make a lump sum addition can significantly impact how much your child has once your child reaches 18.
What is a junior ISA fund?
Junior Individual Savings Account (ISA) is a type of tax-advantaged savings account available in the United Kingdom designed specifically for children.
It is a long-term savings and investment vehicle aimed at helping parents, guardians, and family members save money for a child’s future, such as for their education, buying a house, or any other important life event.
It can certainly feel daunting to get started, but a JISA (Junior cash ISA) is a tax efficient way to save money for your child.
Some of the top JISa with the best interest rates are Coventry BS – 4.95% (post/branch only)
Tesco Bank – 4% (can be opened online).
The best junior ISA funds : good- to-knows
- What are the current top rates for cash Junior ISAs? At the moment, Coventry Building Society offers the best rate of 2.95% in the market.
- It is possible to transfer a child trust fund or an existing JISA to a new Junior ISA.
- Withdrawals are not permitted until the child reaches the age of 18.
- Junior ISAs have a yearly limit on contributions, similar to an adult ISA. This limit represents the maximum amount that can be paid into the account within a single tax year.
- Only a parent or legal guardian is eligible to open a Junior ISA.
What are some of the best junior ISA funds ?
Some of the best performing junior ISA funds are
- Baillie Gifford American
- BNY Mellon Global Income
- Fidelity Index World
- HSBC FTSE 250 Index
- IFSL Marlborough UK Micro-Cap Growth
- Legal & General UK 100 Index Trust
- LF Lindsell Train UK Equity
- Lindsell Train Global Equity
- Rathbone Global Opportunities
- Vanguard LifeStrategy 100% Equity
- Vanguard US Equity Index
Most popular ISA shares:
- Alphabet
- Amazon.com
- Berkshire Hathaway
- Glencore
- International Consolidated Airlines Group
- Lloyds Banking Group
- Microsoft
- Rolls Royce Holdings
- Shell
- Tesla
Who can open Junior ISA?
Junior ISA accounts can be opened for children who are under the age of 18 and are living in the UK.
A parent or Legal Guardian: A Junior ISA can be opened by the child’s parent or legal guardian on behalf of the child.
The parent or guardian assumes responsibility for managing the account until the child reaches the age of 16. At 16, the child can take over management of the JISA but cannot make withdrawals until they turn 18.
If a child already has a Child Trust Fund (CTF) account, which was available to children born between September 1, 2002, and January 2, 2011, it can be transferred to a Junior ISA. This allows those with CTFs to take advantage of the tax-free savings benefits offered by Junior ISAs.
