With ever-rising costs of houses, cars, bills and university fees, it’s important to think about your child or grandchild’s future.
With this in mind, we’ve been looking into the best way to save for their future, with a low-risk and low-cost way of saving up and building a nest egg. Our favourite choice is the Junior ISA available at Shepherd’s Friendly, with the excellent cash bonuses and growth potential.
Why a Junior ISA?
A Junior ISA’s tax rules are exempt from capital gains tax aswell as income tax, making this a great tax-efficient choice since all of your growth and withdrawals are tax-free. This also means that when they reach 18, they can either withdraw tax-free, or move the cash over to an adult ISA and continue saving.
Shepherd’s Friendly’s Junior ISA isn’t affected by low savings rates, unlike cash Junior ISAs. Instead, it’s invested in different assets such as low-risk property, bonds and deposits; increasing the potential to grow! To add to this, Shepherd’s Friendly aim to add an annual bonus, which will never be taken away.
You can make as many changes to payment as you like throughout the plan, whether that be altering monthly payments, starting, stopping or adding extra money. That means you don’t have to worry about a reliable income- you can stop payments whenever you like as a safety net.
Once the plan has been opened, anyone can make payments into it. This is perfect for gift contributions around birthdays and special occasions.
Why Shepherd’s Friendly?
Shepherd’s Friendly have paid an annual bonus every year since they launched their Junior ISA, proving them as an ideal company to save with.
We think it’s important to speak to a real person if we need help, which is another reason to choose Shepherd’s Friendly, since it’s so easy to change payments are ask for help with a friendly and helpful staff member. Plus, since they’re a mutual, there are no shareholders to pay dividends to- meaning more goes to your child; and they’re entitled to a share of the profits too.
How to open their Junior ISA
It’s so easy to open a Junior ISA, plus if you do you can get a Love2Shop voucher code worth up to £30! You can open a plan in minutes, where you can simply choose between Direct Debit payments from just £10 or a single deposit from £100 to set your child up for the future.
If you’d like to open a Junior ISA to help your child, or learn more about them, simply click here.