Working in the financial industry for over 30 years, Rachel Thrussell is the leading independent expert on UK savings products. Her views are constantly in demand from both the industry and the press.
Where would be the best place to invest £500 for our newly born grandson?
A Junior ISA (JISA) is designed as a type of savings account for children. Although a parent or guardian must open a JISA on behalf of their child, contributions can then be made by anyone, friend or family, up to the annual limit, which currently stands at £4,368. Lump sum and regular payments are both welcome. There are two types of JISAs. A cash JISA pays interest on the amount deposited, or taking a riskier approach, a stocks and shares JISA allows you to invest in shares or investment funds. Coventry Building Society currently pays the market-leading cash JISA rate of 3.60% yearly, with interest paid tax-free.
Parents take the management reins of a JISA until the child turns 16. However, it is not until the 18th birthday, when a JISA automatically becomes an adult ISA, that money can be taken from an account.
|1 Year Fixed Rate Bond||1.17%|
|2 Year Fixed Rate Bond||1.27%|
|3 Year Fixed Rate Bond||1.38%|
|4 Year Fixed Rate Bond||1.57%|
|5 Year Fixed Rate Bond||1.61%|
|11 February 2020|
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