25th June 2021

Junior ISAs for family members

Why not build towards your child’s future and allow friends, relatives to contribute too. We think a Junior ISA is a strong option for saving and building towards your child’s first steps into adulthood. Whilst we agree it is nice to spoil your little one with gifts and toys, we’re suggesting rather than overwhelm them with toys, why not split and save.

Marking birthdays and life achievements with an investment into their future will provide a strong base for them. The funds you save now will allow them to have a greater gift for their future. By allowing space for friends and family to do this too, a Junior ISA opens a space to contribute to the big goals your child will grow into. Here’s a rundown of our most popular Junior ISA questions this month…

Can I open a Junior ISA for my grandchild?
No, only a child’s parent or legal guardian can open a Junior ISA account. Once this is open, the parent or guardian can share the information allowing family members, friends and, more importantly, grandparents to then contribute to the account. Once you have the details you can make a deposit into the account wherever and whenever you like – as long as it doesn’t reach the yearly £9,000 limit. 

Can I pay into my nephew’s ISA?
Yes, as above, once your nephew’s parents have opened the account you can be invited to contribute. It’s a simple as transferring money, making a payment or online shopping!  

What is best for my niece or nephew, cash or stocks and shares Junior ISA?
As you may be aware Stocks and Shares ISAs are based on longer-term investment objectives, so it’s really about the long term goals. That is why at The Children’s ISA we offer a range of risk-managed investments for you to choose from. These are a lot more active, you need to check-in and monitor the markets. A Junior ISA offers a less time-consuming option.

To give you an overview of the Junior ISA’s we provide here at The Children’s ISA we’ve summarized the four main options below, we have more information on each, depending on which option appeals to you the most.

Actively managed: With this Junior ISA there is a fund manager making specific decisions for you, ensuring your investment objectives are met. They keep an eye on the market and overall manage the performance of your investment. We invest in a range of funds and asset classes, diversification across asset classes and investment managers can reduce risk as well as enhance returns.

Low cost: Here, the investment team focuses on reducing costs to boost your returns. This is managed with a screening process, ensuring that all the investments meet the ‘low cost, safe and suitable’ requirements.

Ethical: With this Junior ISA the money is responsibly invested in socially, ethical companies. The Amity International Fund, which we work with, aims to achieve long term growth by investing principally in international ethical companies.

Shariah fund: A Shariah Investment is an ethical fund, governed by the requirements of Shariah law and the principles of the Muslim religion. This would be most suitable for an investor looking to achieve returns in line with Islamic Investment Guidelines.

Can my nephews or niece’s parents access cash in their Junior ISA?
No, only the child named on the account can access the funds once they are 18 years of age. They can then choose to withdraw it or reinvest it.

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The website and the information contained therein should not be regarded as an offer or solicitation to conduct investment business in any jurisdiction other than the UK. Past performance is not necessarily a guide to future performance and the value of your investment may fall as well as rise, and any income received in the form of dividends may fluctuate. You may not get back the full amount when the account is closed. If paying regular monthly contributions please bear in mind that if contributions are not maintained you will be less likely to achieve the investment amount that was originally projected.

The information on this website is not advice, it is provided solely to enable you to make your own investment decisions. The investments and /or investment services referred to may not be suitable for all investors.

The Children’s ISA Limited is authorised and regulated by the Financial Conduct Authority. (FCA No: 563043)
The Children’s ISA Limited is a company registered in England and Wales. Registered Company Number: 07486015

Registered Office: Unit 2, Digital Park, Pacific Way, Salford Quays, M50 1DR