Investing for children

The Junior ISA

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 PlannerRTS Financial Planning • • 01908 592544 • 07702 965275
RTS Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales.
Registration number 10619163. 21 Fosters Lane, Bradwell, Milton Keynes, MK13 9HZ

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