25th April 2022

What is the best children’s ISA for my child?

When it comes to saving for the future, there’s no time like the present. Like all investments the sooner you can start saving the greater the potential for a more substantial return. But what about saving for your child’s future? When it comes to saving for your little one there are a myriad of potential options out there. In this piece, we want to take you through just a few of the choices.

Junior Cash ISA or a Junior Investment ISA?

A Junior Cash ISA is very similar to a savings account, the exception being that the child won’t be able to access the funds until they are 18 years of age. Like a savings account, a Junior Cash ISA will come with a fixed interest rate. 

Like their cash alternative, a Junior Investment ISA is only accessible by the child after they turn 18. Where there is a difference is that a Junior Investment ISA will be invested in stocks and shares, much like a pension. 

Ethical Junior ISA 

An Ethical Junior ISA is a tax-efficient savings account for children that invests with an ethical framework in mind. Ethical Junior ISAs are Stocks and Shares ISAs, meaning the funds are invested via the stock market. An ethical Junior ISA, typically, will invest in socially responsible and ethical products and companies.

Shariah Junior ISA 

‘Sharia-compliant’ is a term that refers to financial products which are designed with Islamic principles in mind. This means money invested in a Shariah Junior ISA will not be invested into businesses involved in the production of alcohol or tobacco,  services like gambling or any products which are not in line with Islamic principles. 

The Children’s ISA calculator 

When your child is very young, the thought of them reaching maturity can seem like a lifetime away. But time flies, which is why we have produced our handy little calculator so you can see how much their investment could be worth (based on historical performance). 

© The Children’s ISA Ltd 2022. All rights reserved.

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

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