How to choose a junior shares isa for grandchildren

[Sunshineandoranges]

Two granddaughters aged five and two. It has been suggested that a good way to help is for us to pay into a junior shares ISA for each of them. I would be very grateful for some advice as to how to choose which shares isa to open for them. We only have cash isas for ourselves and the junior shares isas seem more complicated.

Any one?

I have this one for my DC. Pay in a monthly amount and get bonuses paid in quarterly. It’s quite a straightforward one.

www.shepherdsfriendly.co.uk/junior-isa/

It seems that only parents or guardians can open junior ISA’s, but you can pay into it, once you have the account number. You yourself can open a savings account as Trustee for ,…… grandchildren that they can access at 16.

When I opened one for my eldest I just compared platform charges to see which was the cheapest. Comparison websites will help with this (money supermarket has some info for example). Then you can select the cheapest options on the platform for a particular fund if you know what you want to invest in.

Thanks very much..I will use all of this information

Do you want an ISA that invests in stocks generally, managed by a professional or at least their computers? Or do you want an ISA where you or the parents choose the shares etc within?

Only a parent can open a Junior ISA, so you could only contribute to it through them.
My own take on it - The child has complete control at 18 to spend with reckless abandon; either parent could make unwise investment choices before then - so I wouldn't use it for investments.

A General Investment Account (GIA) in your own name or a S&S ISA if you haven't used up your own allowance would give you more options.

InvestEngine has no platform fees, or FX fees. A Global Index tracker ETF is probably the one of the easiest and cheapest ways to diversify risk over the longer time frame as it invests in stocks and shares across the globe.
(This is just my own experience and not in any way a recommendation or advice as I am not a financial adviser, so you must undertake your own research).
Managed funds very rarely beat the index over time. Their fees can have a significant effect on overall returns.

Another interesting option, perhaps alongside a GIA, is a Junior SIPP. Again it must be opened by a parent, but it will have many years of growth and compounding for building a nest egg in later life. The maximum contribution per year per child is £2880 and it will receive a tax relief top up to £3600.
I quite like the idea of leaving it to grow for when I'm no longer around.