Investing
for children
Learning to drive, university fees and house deposits – just a few of the payments made by the bank of mum and dad. Investing early for children could help to lighten the load.
Important Information
Please remember that the value of investments will fluctuate and returns may be less than the amount originally invested. Tax treatment depends on your individual circumstances and the ISA and tax rules can change. Whilst we may draw attention to certain investment products, we cannot know which of them, if any, is best for your circumstances and must leave that judgement to you. If you are unsure about the suitability of any investment you should seek professional advice.
Junior ISAs
The Junior ISA is a version of the long-standing and popular ISA but aimed at parents, guardians and grandparents who wish to save for a child’s future.
Child Trust Fund
A Child Trust Fund (CTF) is a tax-free savings account for children born between 1st September 2002 and 2nd January 2011. The annual CTF allowance is currently £9,000, the same as the Junior ISA allowance.
Designated investment account
With a junior ISA and Child Trust Fund, the savings are passed to the child when they reach 18. You may prefer to take advantage of designating an investment account for your child.
Designating the fund only provides the intention to pass the funds onto the child, rather than them becoming legally theirs when they turn 18.
