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21st
Jul 2020
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What is the Best Junior Investment ISA?

What is the Best Junior Investment ISA?

Every parent wants what is best for their child. For those who are able to offer their children some financial support and security for their future, a Junior ISA (JISA) is a great way to invest in your child's future - but with so much choice in the market, what is the best Junior Investment ISA? We've rounded up five of our top picks. 

Why open a JISA?

Tax year 2020/2021 has kicked off, and with it the generous new allowance for Junior ISAs is now in effect.

This tax year, parents or loved ones can put up to £9000 per year into a Junior ISA for their child - and with that in mind, many will be wanting to make the most of this allowance. 

There are two types of junior ISA: Cash junior ISAs - where any interest accrued is not taxable; Stocks & Shares Junior ISAs where money is invested and no tax is payable on any capital gains or dividends received. This article focuses on parents who are considering opening a junior stocks and shares ISA - also known as a junior investment ISA.

What do I need to consider before looking at Junior Investment ISA options?

There are a few things you should consider when you are looking at different platforms and account options. Sit down and examine your (and potentially, your child's) needs and wants from this account. 

Some examples of things to consider are:

  • Cost
  • Functionality
  • Tax-wrapper offers
  • Investment Choice

Our Top Five Picks for a Junior Investment ISA

1. Hargreaves Lansdown

One of the largest platform providers in the UK with £85 billion under management. Not the cheapest with an annual management charge of 0.45% but have a large choice of funds (3,000+), including access to ETFs, investment Trusts. There is online and mobile app share dealing at £5.95 per deal for UK and overseas shares.If you are short of inspiration you access their investment ideas for 2020 for your child's JISA.

2. Interactive Investor

 ii offer a fixed fee service so if you already have an account with them you can add a JISA for no extra fee. If ethical investment is important to you ii have a good list of investment options. Currently ii offer a free credit for share dealing within a JISA.

3. Fidelity

Fidelity are a global investment manager founded 50 years ago. You can open a junior ISA from £50 pm or invest a lump sum from £1,000. Fidelity apply a annual service charge of 0.35% on investments under management. As well as providing tools to research your own investment selections, Fidelity offer picks from their inhouse expert, selected favourite ETF funds, and their top 50 funds across different sectors.

4. Shepherd's Friendly 

Shepherd's Friendly were established in 1826 and are a UK based friendly society and mutual insurer. You can invest from £10 per month (or with a £100 deposit). Your child's money is invested on their behalf by a fund manager who will largely focus on stocks and shares. They have a goal of achieving high levels of growth over a long period of time, allowing your child to reap the benefits of the JISA when they are of age. 

5. Scottish Friendly

Scottish Friendly offer a considerable amount of flexibility in their Select Junior ISA; you can invest from £10 per month, or with a £50 lump sum, or a mix of both if that suits you better. They allow you to raise, lower, stop and restart your payments at your convenience and offer a wide selection of eight funds for your child's investment, so you can pick and choose what suits you and your child. 

For more information, and more options for your JISA allowance, read our Junior ISA page for the best rates. 

Junior ISAs

Junior Stocks and Shares ISA

from Hargreaves Lansdown

Regular Savings
  • Investment Options: Invest from £25 per month or deposits of £100.

Why we like it: Invest for your child from £25 pm tax free. A wide range of top performing funds to choose from. The annual charge for holding investments in a Hargreaves Lansdown Junior ISA is never more than 0.45%. Your dealing and other charges will depend on the investments you choose.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Junior Stocks & Shares ISA

from Fidelity

Regular Savings
  • Investment Options: Fidelity offer over 3000 Funds from over 70 Investment Companies.

Why we like it: You can tell Fidelity your risk preferences and they will suggest funds for you to consider for your child. You can also use their "Select 50" list of Fidelity's favourite funds. Alternatively If you want to look at all investment options you can use their poweful search tool. Fidelity have a low cost service fee that starts from 0.35% pa.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Friendly Junior ISA

from Shepherds

Regular Savings
  • Investment Options: Invest from £10 a month or a £100 deposit

Why we like it: Your child’s money will be invested on your behalf through a fund manager and it will be invested primarily in stocks and shares, with the aim of achieving higher growth over the long-term than might be available by saving in a cash-based Junior ISA.

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Investment ISA Pros and Cons

7th August 2020

The tax-free returns offered by an Investment ISA (otherwise known as a Stocks and Shares ISA) can be very tempting at first glance - however, as with any investment, it is important to weigh up the pros and cons. So we've put together a list of what you need to consider before opening your own Stocks and Shares ISA account. 

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