Your questions answered: Junior ISAs & children’s bank accounts

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Created for Moneyfarm

We're no longer taking questions on this Q&A. Chris has answered some of your questions below!

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With so many options available, it can be difficult to know the best way to start saving for our children's future so we've invited Chris Rudden from Moneyfarm to answer your questions. Whether you’d like to know how to start saving for your child’s future, what type of account is right for your family or how you can inspire your children to save money, post your question on the thread below.

• Everyone who shares a question below by Wednesday 22nd June will be eligible for the prize draw where one lucky Mumsnet user will win a £200 voucher for a store of their choice.
• Chris will be back online in a couple of weeks to answer a selection of your questions on the thread below.

About Chris Rudden, Head of Investment Consultants UK “Chris is passionate about blending technology and human expertise to help people make better investment decisions to secure their financial future. Chris has risen through the ranks at Moneyfarm and is the head of the client-facing department for the UK.”

Here’s what Moneyfarm have to say:
“Finding the right path for your investment journey has been at the core of our strategy since we began a decade ago. And while the markets are constantly changing, there’s a constant – our expert team, equipped with quantitative and qualitative techniques (and some tools) remain committed to helping you make better investment decisions.”

Thanks and good luck with the prize draw!
MNHQ

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Great question! Thanks Chris! What age would you suggest starting a JISA and is there a recommended monthly amount?

My child is 14 and has a CTF which we've saved into since birth. Is there any point changing it to a JISA bearing in mind it will only have 4 years to run?

The reason I'm considering changing is because the management rate on a fully managed JISA is roughly half that of the managed CTF.

Thanks!

Is it possible to invest in some sort of parent-child account, so that the child can't withdraw money without the parent's knowledge?

As cash ISAs are not a good option these day with interest on savings being so low why would a high interest saving account not be a better option for my child.

I have a junior cash ISA which has been in same account for 6 years. Is it worth looking at better interest rates at a different provider?

I have a newborn. Is it better to wait for interest rates to (presumably) rise before locking cash away in a JISA? Or is it always better to start saving asap. Thank you

Is there any way I can save money in a JISA and still retain some control when kids turn 18 if they aren’t sensible with money? Seems a shame to save for so long and then have a child waste it all at age 18. Or is it just out of my control and I have to hope I have managed to raise children with a sensible attitude to money?

Any tips on trying to encourage my 9 year old to save some or all of his pocket money? He always seems to find something to spend it on, usually plastic rubbish that he plays with once and then gets bored of! My 6 year old is a great saver but maybe because he's saving for something big ( a play station! I think he'll be 10 before he can afford one but he's happy to save his pocket money with the thought that some day he'll have a playstation!)

I remember saving as a child through the school bank. It was a great way to start learning about saving. What can be done now to make saving more attractive to children and young people?

I had a CTF for my youngest child and due to poor interest rates changed this recently after 12 years. I changed it to a JISA and within a few months the interest too fell to less than 1%. Would changing the type of savings account each year to chase the higher interest be worth it for the next four years or would it be a better idea to leave it where it is and start a new one else where please? My youngest could only get a JISA and theirs is a below 1% too.

I have two school age children. Each has a ‘savings’ account and ‘spending’ account with really low interest rates. It is getting them used to managing their own money. What would be a good age to introduce ideas in making their savings work better for them. I have no stocks or shares myself as never really fully understood these and have only saved or paid extra towards mortgage in the past. Thank you.

Do you have a passive tracker with low fees?

Investing need not be complicated and expensive, it can be done very low cost these days, with some providers offering under 0.4% total fee (platform plus fund fees) per year.

Are there any other saving types like premium bonds where you can hope to win more money?

When is a S&S JISA appropriate and when is a Cash JISA appropriate and are there any situations in which a child would have both?

Are there any savings accounts with a reward now? Maybe similar to the Help To Save accounts?

I appreciate it is best to have a range of investments. However, if you can only contribute to one at the moment is better to opt for a S&S JISA or a cash JISA? Or are there different S&S options that might be more suitable for a child?

What amount should I be saving for my child each month? Is there a percentage of my income I should be aiming for?

Are Premium Bonds a better savings option than an ISA? I'm tempted as there is obviously opportunity to win money too..

I have stocks and shares junior Isas for both my kids which have done extremely well over the years.

Although they are sensible kids, I'm concerned they could waste the money when they come into it at 18! Is there any way to delay giving them the money or to have it moved into a joint account?

Should we be investing the savings we're putting aside for our daughter? Currently just putting these in a savings account. I have very little understanding of stocks and shares. Thank you 😊

How's offering the best interest rate for the JISA at the moment?

Is this the best longer term investment?

Is it worth opening a stocks and shares ISA? Or is it best to keep the money in a savings account? I have two sons that I put money into their accounts (when I can) but unsure if I should be investing it instead! Thank you

I had a CTF for my child but it lost money so I changed it to a JISA as I felt that was safer. As interest rates are so low, is it worth taking the risk and changing to a S&S JISA? How do I work out the risk to reward balance?

Is there a way to stagger withdrawals from a junior ISA? Say take out 25% at 18, another 25% at 25 and so forth.