Best Junior ISA

If you are looking to start an investment account for your child, you are in luck, as beginning November 2011, junior ISAs now allow you to put away tax free money, each and every year, towards your child’s financial future. The child is not allowed to touch the money until they are 18, but if the maximum amount of money is put into the account (3,600 pounds) each and every year, they are going to have a substantial sum of money waiting for them.

There are two major differences in junior ISA accounts. The first is a cash-based account, while the second is a stocks and shared-based account. Each ISA provider is going to have different specifications for each investment, so it is vital to read the fine print for any investment you take out so you can find the best Junior ISA. You are going to find some investment companies provide a better interest rate. On top of this, stock based junior ISA investments tend to yield greater rewards, but do come with higher risks, as it is more likely for the funds to be lost, at least partially, should the stock sink suddenly that the investment company has the ISA invested in (the investment fund is run more like a mutual fund, so the investment is made up of hundreds of different stocks).