Junior ISAs: kids’ access at 18

[sushidave]

I?d like to set up a savings account for my baby DD so have been looking at the options.

A JISA seems like the best options in terms of amounts we?re likely to deposit and interest rates (providing I stay on the ball with switching providers to maintain good rates) but the one thing I?m uneasy about is the fact that at 18, all monies will legally be my DDs.

Sounds great, but if we save the maximum amount each year, this means that at 18 she could potentially get her hands on £86k. It will probably be worth half that in 18 yrs time, but still, I remember what I?d have wanted to spend it on at 18 and not sure I?d approve now as a parent

How have others got round this, or have you just not worried about it?

The alternative is opening up an ISA in her dad?s name (I already have one) and using it for DD?s savings. For various reasons, a regular kids? savings account doesn?t appeal.

My DS was born before Child Trust Funds came into being but I set up various investments for him and, when my grandmother died, she also left him a lump sum. My view was (and is) that I had 18 years to educate him about finances, personal responsibility and offer some guidance on the way this money is to be spent when it is transferred to him. He may use it wisely or he may use it badly, but I think to start out assuming that he's going to be irresponsible when he hits 18 would be pessimistic in the extreme.

They can only get it if they know about it. If my child was that wild at 18 I'd be tempted to not mention it until they were older.

This is why any savings we have or our dc is in my name. They have their own bank accounts for Christmas and birthday money but what we save for them is technically mine until I decide they are responsible enough to have it. I've worked hard for it, I do not want it being wasted and however well educated you think your children are about money I still think the temptation will be there to waste it. Personally, I'm not taking the risk.

I'm also saving in my own name. I don't see the JISAs necessary unless you already maxed your own ISAs.