Most of us know that Individual Savings Accounts, or ISAs for short are a simple and easy way to save – and the best thing is you don’t pay tax on them. But did you know that you can now set up an ISA for your children.
A Junior ISA or JISA for short, can be set up for children under 18 and currently a parent can pay in up to £4,128 per year per child. Many high street banks offer cash-based JISAs but interest rates are likely to be low. As an alternative you can set up a JISA with some investment platforms that allow you to invest in the stock market. This would mean taking a risk that the value could go down but if you invested the full allowance each year and made an average return of 5% per year, your child could benefit from a nice sum of £121,937 at age 18. If you can’t afford to take a risk, make sure you take out a cash-based ISA instead.
For information and advice about financial planning:
Carl Roberts FPFS, Chartered Financial Planner
email@example.com • www.rtsfinancialplanning.co.uk • 01908 592544 • 07702 965275
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