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    What are our best options for junior ISA?

    03 November 2021

    Question by Sophie

    We have just had a baby girl. Put 2k in child current account. Now thinking about premium bonds so money is accessible. But family wanted to give her some money (unsure how much) so thinking about junior S&S ISA? We were also likely to contribute but maybe only a couple of thousand as cannot access till 18. But aware this likely gets much better returns especially over 18 years. What are the best options for junior ISA? We both have some S&S ISA (I have Vanguard life strategy) but would probably prefer another provider so spread risk…. Any suggestions? Thanks

    Answered by Boring Money

    Hi Sophie,

    Congratulations!

    And well done on already putting money aside for her future.

    If you are putting the money aside for the long term, I would suggest that a current account and Premium Bonds are not the best options as the money is likely to be eroded by inflation.

    A Stocks & Shares ISA appears a more sensible wrapper as the money should outperform and provide more growth over the long term.

    If you are going to invest in a tracker fund similar to the Vanguard Life Strategy then you would not be spreading the risk as the fund will track the same investments.

    You may find it easier and less administrative burden to remain with the same provider.

    I hope that helps and that the sleepless nights do not last too long!

    Josh

    Answered by

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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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