Isn’t it time you took out a junior isa?
Look a little closer at savings, investments and the best open market option for your needs at the moment and it’s easy to become a little confused. It’s the same when you want to invest money for your children’s future, a wealth of different options are available. Have you thought about taking out a junior isa right now though any child can have a junior ISA as long as they are below the age of 18? If you haven’t taken out a child trust fund account a junior isa could be the ideal option.
The junior isa is a saving account for a child and it enables parents to save money with a tax-free option. Start to place money in a junior isa right now and your child could reap the rewards then they become an adult.
How much can you save with a junior ISA?
At the moment the maximum amount of money you can put into a junior isa is set at £3,600 per year. Once the cash has been deposited into the junior isa the taxman won’t charge for any interests or gains on the account as long as you don’t go over the yearly threshold. So you don’t have to be financial wizard to work out the gains on a junior isa over an 18-year period.
Set up the junior isa whilst your child is still a baby and with regular contributions a healthy pot can be accumulated by the time the child turns 18. At this point they can either decide to cash in the junior isa or leave it where it where it is and it will become a standard ISA. If you want to find out more about a junior isa speak to an independent financial advisor (IFA) that helps clients find the best open market option.
Can you put stocks and shares into a junior ISA?
Actually you can open two types of junior isa, one for cash and one for stocks and shares. Both of the junior isa accounts run independently of each other but you can only place £3,600 into both accounts in total. For example, you might decide to split the junior isa accounts. Place £2,000 cash into one and £1,600 in stocks and shares into the other and the good news is you can transfer money between both accounts whenever you like.
A junior isa gives you a great degree of flexibility as you make plans for your child’s financial future. T o hear the full facts talk to an IFA that provides customers of retirement age with advice about an open market option.
IFS 4 You are here to help you if you have problems setting up or finding the right choice of junior ISA. They specialise in financial services and advice. If you’re looking to setup an open market option, they are the smart choice.
