A Junior ISA allows parents, family members and friends to lay the financial foundations for a child’s future. By starting a Junior ISA, you’ve made the smart choice and started a savings journey that will last until their eighteenth birthday, where they then have full control over the account.

Once an account’s set up by a parent or legal guardian, your friends and family can easily add money into the Junior ISA account. With long-term tax free savings you are using a clever and tax-efficient way to invest money for under-18s. Simply put, there’s no UK income or capital gains tax to pay on your savings, providing a smart gift option rather than a here today, lost at the bottom of the toy box tomorrow one. 

To help you get a better idea of the potential of your investment, we’re looking at how much you and your child would have saved on their tenth birthday, if you began the Junior ISA the year in which they were born. Hypothetically, we are looking at if you paid £100 a month into the account and, by our calculations, over ten years and based on a projected 5% growth per annum, means you could be looking at a sum of around £15,500, which is an impressive amount, for any ten year old! 

As we also mentioned above, with the Children’s ISA, you can be joined in your investment by a grandparent, family member, close friend or godparent. We are determined to make saving easier for everyone involved, with a wide range of options available allowing for greater access that works with you. The Children’s ISA is managed online, and you can add money at any time online, with a simple and easy to view and manage your account at a click of a button. We are aware that sometimes you need extra help and to speak to a person, and our friendly team at our Manchester based head office are on hand to help. 

If a grandparent, for example, matched your contribution and also paid in £100 a month, by the time your little one is ten, you would hold £31k in their ISA! That could be a house deposit or a substantial nest egg to help towards their student loan and living costs. Please do keep in mind that our calculations are projections and past performance is not necessarily a guide to future performance. The value of your investment may fall as well as rise, and any income received in the form of dividends may fluctuate.

If you would like to discuss with us the benefits of a Junior ISA please get in touch, we’ll be happy to help answer any of your questions.