Investment Focus

Investment Focus: Gilliat Income Builder Plus

Oliver Roylance-Smith / 15 May 2012

Of all the investment themes, income is consistently at the forefront of the investor’s mind, whether you are working and need to supplement your earnings, or retired and looking to add to you... Read more

Investment Focus: Gilliat Deposit Kick Out Plan

Oliver Roylance-Smith / 15 November 2011

Finding a product that offers an attractive solution in the current economic climate is certainly a challenge. However, despite some of the most challenging conditions ever seen, we take a look at o... Read more

Investment Focus: Gilliat Deposit Kick Out Plan

Oliver Roylance-Smith / 20 September 2011

Finding a product that offers an attractive solution in the current economic climate is certainly a challenge. However, despite some of the most challenging conditions ever seen, we take a look at o... Read more

Despite a great deal of trumpeting about the launch of children’s ISAs, a great many people may still be uncertain as to the details of this latest government initiative.

 

In essence and structure, children’s ISAs are very similar to an adult ISA. The main difference between these new savings accounts and the previous Child trust Fund is that children’s ISAs are entirely dependant on donations from parents and family, with the Government making no contribution.

 

The maximum amount that can be placed into one of these accounts on a yearly basis is £3,600.

 

The two main types of children’s ISA are:

  • Cash ISAs present the least risk but only accumulate interest which could lead to a real terms loss if there is a sustained rise on inflation
  • Stocks and Shares ISAs have access to specialist investments and so may represent a more profitable long term strategy in the right circumstances but there is a risk to capital.

 

See below to get a FREE Junior ISA pack:

Junior ISA Selection
ProviderJunior ISA ProviderRegular SavingsInvestment OptionsOnline ValuationsMore Info
Fidelity Junior ISAyesOver 1200 Funds from over 70 Investment CompaniesyesMore Info >
  • Invest from £500 to £3600 pa per child
  • High Quality shortlist of leading UK Funds to choose from
  • Cash Options available
  • Fidelity are a leading UK ISA provider with over £34 billion under management
  • The value of investments and any income can fall, so the Junior ISA could return less than you invest
  • Returns on investment funds are not guaranteed
Alliance Trust Junior ISAyesOver 1400 Funds from over 40 UK Fund ManagersyesMore Info >
  • Invest up to £3600 a year per child
  • Winner Best Stocks and Shares ISA What Investment Awards 2007, 2008. 2009, 2010 and 2011
  • Available for children under 18, who didn't qualify for a Child Trust Fund
  • High Quality shortlist of leading UK Funds to choose from
  • Over 21,000 International equities from 21 foreign exchanges across the globe.
  • The value of investments and any income can fall, so the Junior ISA could return less than you invest
  • Returns on investment funds are not guaranteed
  • Annual admimistration fee £25 + VAT
Scottish Friendly Junior ISAyesA range of assets including UK and global shares, bonds and cashyesMore Info >
  • Invest up to £3600 pa per child
  • Invest from only £10 a month, or a lump sum from just £50 or a mixture of both
  • Available for children under 16, who didn't qualify for a Child Trust Fund
  • Available for Junior cash ISA holders
  • The value of investments and any income can fall, so the Junior ISA could return less than you invest
  • Returns on investment funds are not guaranteed
Shepherds Friendly Junior ISAyesA range of assets including UK and global shares, bonds and cashyesMore Info >
  • Invest up to £3600 pa per child
  • Invest from only £10 a month, or a lump sum from just £100 or a mixture of both
  • Available for children under 18, who do not already have a Child Trust Fund
  • Available for Junior cash ISA holders
  • The value of investments and any income can fall, so the Junior ISA could return less than you invest
  • Returns on investment funds are not guaranteed

It is important to remember that using a children’s ISA money cannot be withdrawn until the child is 18, and the parents will remain in control of the account until the child is 16. Although in legal terms, the money is the child’s property from the day the account is opened.

 

The child is in complete control of the money when they turn 18 and can either shift the money into an adult ISA, withdraw it or invest the money in something else.

 

So, the key benefit of a children’s ISA is the tax benefits, which make it all the more important to decide which kind of account will be most beneficial to your child in this regard. To this end, we recommend that you take your time in looking through different junior ISA deals before settling on one.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.

Popular Junior ISA Searches