Holly Mckay
Holly MackayFounder and CEO
Avatar

Subscribe Now

Free of Charge

    • Home • Advice • Common questions

    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

    Boring Money

    Contact us

    Have a question about money that we haven't answered? Need help making better money choices?

    Email our team today.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. 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.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    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.
    |

    We use cookies

    You will see cookie information on different websites and regulation means that we need to ask your permission to use them. We use cookies to improve our website, for analysis of our visitor data, to show personalised content and to give you a great website experience. For more information about the cookies we use open the settings.