Whatever your hopes for your child it’s likely some of them will have costs attached. The Junior ISA is a flexible and tax-efficient way to save for children.
For the 2016/17 tax year you have an annual allowance of £4,080 which you can put into investments, cash, or any mixture of the two (this will increase to £4,128 in the 2017/18 tax year). Any investments you choose to put into a Junior ISA will be sheltered from capital gains tax and any further income tax.
Whether you’re looking to put aside a lump sum to enable your child to get on the property ladder, or save monthly to fund the increasingly expensive cost of a university education (estimated at around £44,000 for English students in 2016*), Fidelity can make saving for these as easy as child’s play.
Follow the steps below to open a Junior ISA by investing £500 as a lump sum or £50 in a monthly savings plan now.
The value of investments can go down as well as up so your child may not get back the amount you invest. Tax savings and eligibility to invest in a Junior ISA depend on personal circumstances. All tax rules may change in the future. Fidelity Personal Investing only gives information about products and services and does not provide investment advice based on individual circumstances. If you are unsure of the suitability of an investment you should speak to an authorised financial adviser.
*Source: Sutton Trust and Education Endowment Foundation – April 2016.