All parents want what’s best for their children, but it can get overwhelming thinking about ways to save money to help with your child’s future. With the festive season creeping up on us and all the gift buying and decorating we have to do (not to mention the pressure of Elf on the Shelf!) on top of all the other Christmas preparations, thinking about how you could give your child a good financial start in life can easily seem like a daunting task. But beginning to save for your child’s future could be a lot easier if you open a Junior ISA with multi-award winning investment service Wealthify.
Junior ISAs, or JISAs as they’re also known, are a simple, tax-efficient way to start saving money for your child’s future. There are two types of Junior ISAs available; Junior Cash ISAs and Junior Stocks and Shares ISAs. With a Junior Cash ISA, you will not pay tax on the interest on the cash you saved, and with a Junior Stocks and Shares ISA you will not pay tax on the growth you receive from your investments.
If you choose a Junior Stocks and Shares ISA, the investment experts at Wealthify promise straightforward and effortless investing from as little as £1. Simply choose how much you want to invest, pick a risk level and theme (Original or Ethical), answer a short suitability questionnaire, and then sit back and let their team of investment experts take care of the rest.
How Do JISAs Work?
There are many benefits to opening up a Junior ISA for your child, but one of the biggest is that you can begin building your child’s financial future from early on, which could help to eliminate future stress.
But what is a Junior ISA, exactly? In 2011, Junior ISAs were introduced by the government to replace Child Trust Funds. Similar to Child Trust Funds, Junior ISAs are long-term, tax-free savings accounts for your child. Essentially, when you open a JISA, you are ensuring that the savings you put away for your child’s future are tax free (up to £9,000 per year).
When you open a Junior Stocks and Shares ISA with Wealthify, the money you put away for your child will be invested in a wide range of assets including shares, property and bonds.
It is important to remember that as with any type of investment, your capital is always at risk, so there’s a chance your child could get back less than what was invested, but it also means they could see higher returns than they would through earning interest on cash in a regular savings account.
Who Is Wealthify For?
Wealthify is perfect for parents who want to start investing money to put towards their kids’ future. With a large number of positive reviews and financial awards under their belt, including the title of Best Junior ISA for three years in a row at the Personal Finance Awards, Wealthify could be a good option for saving for your child’s future.
One of the best things about Wealthify is that they want to remove the stress of preparing for your child's financial future. Whatever your investment style, from cautious to adventurous, there's an investment plan at Wealthify that suits you and your family.
With Wealthify, you can contribute to your child's future at a pace suited to you; either add regular monthly payments or simply top up your plan whenever you like. The money belongs to the child, not the parent, and can only be accessed when they turn 18. Friends and family can also contribute – discussed in more detail below.
How Do I Open A JISA With Wealthify?
Opening a JISA with Wealthify is simple and can be done in a matter of minutes. Start by telling them your child’s name and age, and let them know how much you’d like to invest (whether by direct debit or one off payments). Then choose one of 5 risk levels, ranging from Cautious to Adventurous, and whether you want an Original or Ethical Plan. Ethical Plans allow you and your child to invest in businesses that are committed to doing good.
A parent or legal guardian can open a Junior ISA on behalf of their child under 18. When you open the account, you will become the registered contact, so you are the only person authorised to manage the account and update any personal details.
However, it’s important to remember that the money in a Junior ISA does not belong to the parent or guardian – it belongs to the child. The child can only access the money in the account after their 18th birthday.
Currently, you can contribute a maximum of £9,000 for the 2021/22 tax year, though this amount is subject to change in future. When the new tax year begins, the annual Junior ISA allowance resets and you can contribute up to the allowance during that tax year.
When your child turns 18, their JISA will switch to an adult Stocks and Shares ISA that they will be able to manage themselves. They can choose to keep their money invested in the ISA or withdraw as much of the balance of the account as they wish - the choice is up to them.
From starting their own business, to setting off on a gap year, or paying for life at university; whatever their goals are, you’ll be helping your child achieve them by paying into a JISA.
Give The Gift Of Savings This Christmas
Make a responsible and eco-friendly choice this Christmas and gift your child an investment for their future. If you’re tired of picking toys off the floor, or you simply want to ensure that the gifts your children receive will be appreciated for longer, why not consider giving them a gift that could keep on giving long beyond the festive season. And using Wealthify’s new JISA Friends & Family feature, you can invite loved ones to contribute too.
With this new feature, you can invite family and friends to gift a contribution to your child’s JISA and they can even add a meaningful message for your child to read, which will be ready and waiting when they get access to the account at age 18.
Not only is depositing money a thoughtful gift, but because the money is being invested, this gift could continue to grow in value in the years before your child reaches 18, and beyond if it’s kept invested.
What Type Of JISA Is Available With Wealthify?
The experts at Wealthify build and manage your child’s JISA for you according to the risk level you’re comfortable with and whether you’ve chosen to invest in ethical organisations. Each Wealthify JISA contains up to 20 carefully curated investment funds from a wide range of shares and bonds across the globe.
Investment funds are a super-easy and cost-effective way to make good investments due to the fact that they’re spread across a diverse range of financial markets to eliminate as much risk as possible whilst aiming to make great returns.
Is There A Minimum Amount To Invest Into A JISA?
Wealthify’s purpose is to inspire anyone to build their future wealth, so it has made investing as easy and affordable as possible. You can open a Wealthify Junior ISA with as little as £1, either choosing to set up a regular direct debit or simply paying into the JISA whenever you like.
One of the best things about investing with Wealthify is the flexibility - you can top up your Plan as often as you want, with as much money as you can afford.
Is Opening a JISA With Wealthify Safe And Reliable?
Your money is in safe hands with Wealthify because it works with global finance providers who are regulated and authorised by the Financial Conduct Authority. Additionally, the money you invest in a Wealthify JISA is held by Winterflood Securities Limited. Winterflood Securities Ltd. is a member of the Financial Services Compensation Scheme, which means your child’s investments may be protected up to £85,000.
Wealthify also guarantees that you have 24-hour access to your investments, so you can easily view and edit your plans online and via their app.
It’s never guaranteed that your investment won’t go down (or up) in value when you start a JISA with Wealthify, so bear in mind that it is possible that the amount you end up with may be less than the amount you initially invested.
What's The Verdict On Wealthify?
Wealthify is a multi-award winning online and app based investment service owned by Aviva, which aims to make investing accessible to all.
You don’t need to be a whizz in financial jargon or have dedicated yourself to spending hours figuring out what the best investment is in between doing school runs, working and making dinner. Wealthify’s team of experts make all the investing decisions for you, monitoring the markets every day to look after your investments and making the best decisions for the long-term health of your Plan. After winning the award for the Best Junior ISA at the Personal Finance Awards for the past three years running, Wealthify has made it clear that it delivers on its promises.
Start your investment plan today from as little as £1.
Our website offers information about budgeting, planning, savings and investments, but never personal recommendations. If you’re not sure what financial products are right for you, including investments, then please seek professional financial advice from an authorised financial advisor.
Past performance is not necessarily a guide to future performance and the performance of investments is not guaranteed. If you do decide to invest please remember that investments can go up and down in value, so you could get back less than you put in and your capital is at risk. This article does not contain any personal recommendations for a particular course of action, service or product. Before subscribing for any services offered by Wealthify, please read the Terms & Conditions.
The online investment service for beginners and long-time investors alike
Wealthify is an online investment service that lets you build personal investment plans and then manages them for you. You can choose how cautious or adventurous you want to be with your investments, and Wealthify will take care of the rest. Wealthify believes that everyone should have access to investing, no matter how much money they have, which is why it offers a range of products, from ISAs, to junior ISAs, to pensions, and plenty of helpful guidance. So whether you’re just starting out or you’ve been investing for years, Wealthify has a plan for you.