Stuck for ideas this Christmas as for to what to buy the children or grandchildren? Is last year’s gift still being played with or is it now on eBay?
Is there a gift they would appreciate in years to come?
Junior ISAs may not be the most exciting gift for a child, but one that will stay with them until they are 18 and possibly further.
In today’s times, building a large deposit of capital could become extremely useful. Top-up fees for higher education, larger deposits required for first time buyers all emphasis the potential problems our children may encounter.
Junior ISA (JISA) - A “tax efficient” savings account
- Children under 18 years old, live in the UK & do not have a Child Trust Fund account will be eligible for a JISA;
- Can save up to £3,600 per tax year;
- Monies deposited within are free of Income tax and Capital Gains tax;
- Monies can be deposited in either a Junior Cash ISA or Junior Stocks & Shares ISA;
- Regular or lump sum investments can be set up;
- At 16, the child will be able to manage the account, but cannot withdraw the money until they reach 18.
Example
£50 per month for 18 years (assuming an annual growth rate of 5%) will provide your child with a sum of just under £17,500.
For those less optimistic about the markets, an annual growth rate of 3% will provide your child around £14,300.
For further information/advice on this topic please contact Ward Williams Financial Services on 01932 830664 or email: cliff.pocock@wardwilliams.co.uk
Ward Williams Financial Services Limited is authorised and regulated by the Financial Services Authority
