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Always remember that investments can go down as well as up in value, so your child could get back less than you put in. Money in a Junior ISA belongs to the child, not the parent, and can only be accessed when the child turns 18. ISA rules apply, and tax rules can change.
Contents:
We’ve compiled a list of some of the best Junior Stocks and Shares ISAs in the UK. These are apps, platforms, websites and fund supermarkets that allow you to invest in stocks, shares, ETFs, bonds and other assets on behalf of your child until they turn 18.
Please remember that when you invest, your capital is at risk. ISA rules apply, and tax rules can change.
Compare some of the best Junior Stocks and Shares ISAs in the UK:
Hargreaves Lansdown is a UK investment platform that allows you to save for your child via a Junior ISA. Money in a Junior ISA belongs to the child, not the parent and can only be accessed when the child turns 18. You can build your own portfolio by choosing from over 3,000 funds, UK and overseas shares, investment trusts and ETFs. Alternatively, the platform offers five example portfolios as starting points depending on your aims and attitude to risk. The five styles are Adventurous, Medium Risk, Conservative, Investing for Children and Investing for Income. You can also tailor the example portfolios by changing the percentage invested in each fund according to your preferences. Once you’ve built your portfolio, you’ll need to monitor it regularly yourself, as Hargreaves Lansdown does not rebalance the portfolios back to the original fund weightings or reinvest income for you.
Hargreaves Lansdown charges an annual platform fee of 0.45% on shares (capped at £45 per year) and 0.45% - 0% on funds. If you choose your own investments, they may come with additional charges, such as fund manager fees. There is no dealing charge for buying and selling funds, but a charge of £5.95 per deal for shares, investment trusts, exchange-traded funds, gilts and bonds applies. Hargreaves Lansdown’s products include a Stocks and Shares ISA, Lifetime ISA, Junior ISA, Fund and Share Account and SIPP. These services are intended for investors who are happy making their own decisions.
Capital at risk. Other charges apply.
Interactive Investor is a UK investment platform with more than 40,000 investments to choose from, including UK and overseas shares, funds, investment trusts, and ETFs. It also has several ready-made funds and expert ideas to make it easy to choose investments. Interactive Investor offers a Junior ISA as part of two of their service plans. Money in a Junior ISA belongs to the child, not the parent, and can only be accessed when the child turns 18. New customers cannot open a Junior ISA without first opening a Stocks and Shares ISA or a Trading Account with Interactive Investor. Interactive Investor offers two service plans that can accommodate a Junior ISA - an Investor Plan and a Super Investor Plan. The Investor Plan costs £9.99 per month, while the Super Investor Plan costs £19.99 per month. You can add as many Junior ISAs as you have children to either of the plans at no extra cost. Once you have joined a service plan and opened a Junior ISA, you can set up the regular investing service, making a minimum deposit of £25 per month.
There are no dealing fees when you contribute this way. Alternatively, if you want to buy or sell individual shares and funds, your first monthly trade is free. After that, trades usually cost £5.99. Interactive Investor’s suite of products includes a Junior ISA, Stocks and Shares ISA, Trading Account and SIPP.
Capital at risk.
AJ Bell is a UK investment platform that allows you to save for your child via a Junior ISA. Money in a Junior ISA belongs to the child, not the parent, and can only be accessed when the child turns 18. The platform offers a wide range of investment options for the DIY investor, including shares, funds, investment trusts and ETFs. Beginner investors or those who prefer to choose a ready-made investment portfolio can get a little, or a lot, of help from AJ Bell's specialists by selecting one of the investment ideas on offer. There are eight total fund ideas, each built by a specialist team, and you can pick the right one for you depending on your attitude to risk and whether you’re seeking growth or income.
AJ Bell charges an annual platform fee ranging from 0.25% to 0%. Dealing fees for buying and selling investments online are £1.50 for funds and £9.95 for shares (reducing to £4.95 if there were 10 or more online share deals in the previous month). AJ Bell's products for children include a Junior SIPP, a Junior Dealing account, and a Junior ISA.
Capital at risk.
Netwealth is a wealth management platform designed for high-net-worth individuals. With Netwealth, you can save for your child via a Junior ISA. Money in a Junior ISA belongs to the child, not the parent, and can only be accessed when the child turns 18. Netwealth’s overarching goal is to help you manage your money cost-effectively while generating a secure income over the medium to long term that may help with important financial events, such as school fees, retirement or elderly care. When you join Netweath, the team of wealth managers will help you define your objectives. This process informs what combination of risk levels and account types are best suited for you. The team will also help you put a financial plan in place and check back in with you regularly. With Netwealth, you can choose from seven ready-made globally diversified portfolios, which aim to maximise the return for your chosen risk level.
The minimum investment amount to become a client of Netwealth is £50,000. This, however, can be made up of different account types and include cash deposits and transfers from other providers. For example, the minimum portfolio size for an ISA is £5,000 and £1,000 for a JISA. There is no dealing fee, but the average annual investment cost comes to about 0.30%. Other charges apply. Netwealth’s suite of products includes a Stocks and Shares ISA, Junior Stocks and Shares ISA, General Investment Account and Self-Invested Personal Pension.
Capital at risk.
Moneyfarm is a UK robo advisor that allows you to save for your child via a Junior ISA. Money in a Junior ISA belongs to the child, not the parent, and can only be accessed when the child turns 18. Moneyfarm provides an actively managed portfolio for your Junior Stocks and Shares ISA. Depending on your risk tolerance, you will be able to choose from seven portfolios with different risk levels. Moneyfarm also provides socially responsible portfolios with their ESG offerings, which invests in forward-thinking initiatives and focuses on the long-term. The portfolios are composed of exchange-traded funds (ETFs), which are traded on the stock market and track the performance of a pool of investments or an index. Moneyfarm actively manages your portfolio to respond to market conditions, aims to create a diverse portfolio and allows you to keep value through investing in low-cost passive funds. There is also a team of investment consultants for you to speak to and get advice regarding your investing strategy.
Moneyfarm has a minimum ISA deposit of £500 and a minimum monthly contribution of £10. The annual platform fee is charged depending on the amount of funds within the Junior ISA, and it ranges from 0.75% if between £500 and £10,000 to 0.45% if above £100,000. There is also a feature to share your child’s Junior ISA account with friends and family, so they can also help contribute. After your child turns 18, they will receive a tax-free lump sum from their Junior ISA to help them with going to university, a first house, or whatever it might be. Moneyfarm also provides a range of other products such as a Stocks and Shares ISA, Pension and General Investment Account.
Capital at risk.
Wealthify is a UK robo advisor offering customers an opportunity to set money aside for their children via a Junior Stocks and Shares ISA. Money in a Junior ISA belongs to the child, not the parent, and can only be accessed when the child turns 18. Wealthify allows you to choose from five investment Plans based on your attitude to risk. These investment Plans are named Cautious, Tentative, Confident, Ambitious and Adventurous and allow you to choose a risk level that best suits your needs. If you are conscious about the environment or would simply like to invest in line with your values, Wealthify’s five portfolios are also available as ethical investment Plans, so you can stay true to your values while investing for your child. Wealthify also has a Friends and Family feature that allows you to invite anyone to pay into your child’s Junior ISA.
Wealthify charges an annual platform fee of 0.60%, and fund management fees range from 0.16% to 0.70% per year, depending on your chosen investment theme. Wealthify’s suite of products includes a General Investment Account, Stocks and Shares ISA, Junior ISA and SIPP in both Original and Ethical themes.
Capital at risk.
Bestinvest is a UK investment platform that allows you to save for your child via a Junior ISA. Money in a Junior ISA belongs to the child, not the parent, and can only be accessed when the child turns 18. The platform has many ready-made portfolios built by Bestinvest experts that are grouped in seven categories depending on your attitude to risk and whether you’re seeking growth or income. The seven types are Defensive, Conservative, Cautious, Balanced, Growth, Adventurous and Maximum Growth. If you need help picking the best option for you, Bestinvest also lets you book a session with one of their coaches and offers low-cost advice packages for personalised recommendations. Alternatively, you can create your own portfolio from more than 1,600 funds, UK shares, investment trusts and ETFs. Bestinvest also has a search tool to help you find and compare individual investments according to key information, performance and statistics.
Bestinvest charges an annual platform fee of 0.4%, but if you opt for one of their ready-made portfolios, the annual platform fee is 0.2%. There is no cost to open your ISA or to buy funds and share dealing costs £4.95 per trade. In addition to the Junior ISA, Bestinvest offers a SIPP for children and Stocks and Shares ISA and SIPP for adults.
Capital at risk.
A Junior ISA is a tax-free savings or investment account for children under the age of 18 residing in the UK.
The Junior ISA allowance for this tax year is £9,000, and both friends and family can pay into the ISA on behalf of the child. Children aged between 16 and 18 can hold both a junior and a standard Cash ISA.
The following are the Junior ISA rules:
When a parent or guardian opens a Junior ISA, they can invest up to £9,000 for that tax year in regular monthly payments or by a lump sum at any time.
They can also encourage family members such as grandparents, aunties, uncles and even friends to contribute up to the total allowance. These funds may accumulate interest and returns that do not count towards the allowance and are effectively tax-free.
When your child turns 18, they can withdraw the money or the Junior ISA rolls into a standard adult ISA.
Here are some of the advantages of a Junior ISA:
Here are some of the disadvantages of a Junior ISA:
The parents or guardians with legal responsibility for a child under 16 can open a Junior ISA and manage the account. A child aged 16 or 17 can open and manage their own Junior ISA as well as an adult Cash ISA. At all times, regardless of who opened the Junior ISA or who is managing the account, the savings belongs to the child, but they cannot withdraw any money until they turn 18.
Yes, Junior ISAs are a good idea. A Junior ISA can be a great way to save long-term for your child and to provide them with the best financial start in life. You do not have to pay capital gains tax if the investment grows, and no UK income tax on any dividends or interest payments, which can help grow savings significantly. A Junior ISA is especially beneficial if you have exceeded the £20,000 allowance of your own ISAs and want to avoid any inheritance tax.
A parent cannot withdraw money from a Junior ISA unless in the following circumstances:
A grandparent can only open a Junior ISA if they are the legally responsible guardian for the child. Only a parent or a guardian with legal responsibility can open a Junior ISA. A grandparent can make contributions to a Junior ISA if they wish.
No, the government does not contribute to Junior ISAs. Junior ISAs have replaced Child Trust Funds (CTF). When a parent opened a CTF, the government used to pay in £500. However, the drawbacks of Child Trust Funds were high investment charges and poor interest rates. A Junior ISA is now a comparably better option to save for your child, and if you have an existing CTF for a child under 18, you can transfer these savings to a Junior ISA.
A grandparent can pay into their grandchild’s Junior ISA set up by a parent or legal guardian. All they need is the account number of the Junior ISA they want to put money in and the child’s date of birth. All deposits must be made from a UK bank account and cannot exceed the £9,000 per year allowance.
You can deposit as little or as much money as you want into a Junior ISA up to a maximum of £9,000 in one tax year.
Yes, your child can have two Junior ISAs in the form of a Junior Cash ISA and a Junior Stocks and Shares ISA. You must then split the £9,000 ISA allowance between both Junior ISAs in one tax year. You can only have one Junior Cash ISA and one Junior Stocks and Shares ISA open at any time. If your child is over the age of 16, they can hold both a Junior ISA and a standard Cash ISA.
Children under the age of 18 cannot hold company shares in their own name, but they can invest through a Junior Stocks and Shares ISA. Just like a regular adult ISA, the money deposited into the Junior ISA can be invested in equities, bonds, cash and even property shares, and you do not have to pay income tax or capital gains tax on any returns.
Here are some of the best Junior Stocks and Shares ISAs in the UK:
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