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).