You can invest in a Stocks and Shares Junior ISA, a Cash Junior ISA or a combination of the two. A Junior ISA is exclusively for under18s who are resident in the UK, and do not have a Child Trust Fund.
The account is held in the child’s name, but they cannot access the money until they are 18, at which point it can be converted into an adult ISA, or encashed. Once opened by the parent or guardian, other members of the family or friends can invest up to £3,600 each tax year in the Junior ISA.
Obvious uses for the fund are things like university fees, a gap year abroad, or the deposit for a property purchase.
Investment returns may seem a thing of the past, but over the long term it is likely that investing in tough times will pay off, and investing steadily through bad times and good is one of the best ways of protecting against the volatility of the markets and keeping ahead of inflation. The tax advantages of the Junior ISA are likely to make it thorougly worthwhile.
