- One in five (18%) OneFamily Junior ISAs have multiple investors paying in to them each month
- Average direct debit paid into a Junior ISA is £32 a month, meaning if two relatives are making payments these children are benefitting from £768 a year in tax-free savings[i]
- Over half of all grandparents (54%) give their grandchildren financial support with one in three (30%) putting the money into savings for them[ii]
- The OneFamily Junior ISA has delivered investment returns of 49% over the last five years, meaning every £1,000 invested then will now be worth £1,490, while cash has returned 7%, so the value today would be only £1,070
OneFamily data has revealed that one in five (18%) Junior ISAs now have more than one person investing in them, as families and friends save together for children’s future.
Junior ISAs are a long-term children’s savings product. £4,260 can be paid in a year and the money saved is tax-free. They have the added benefit of allowing anyone to pay into them so family members and friends can help build a healthy nest egg for a child’s future.
The average monthly direct debit into a OneFamily Junior ISA stands at £32, so with two relatives making payments, these children are benefiting from £768 a year in savings, which if saved for 18 years with an annual growth of 5%, could deliver over £17,000. Many families put this money towards a deposit on a first home or university fees.
Steve Ferrari, Managing Director of Junior ISAs comments,
“When it comes to investing for children, Junior ISAs should be the first accounts to consider, as they allow families to build up a sizeable, tax-free pot on children’s behalf, that anyone can pay into.
“We know that the majority of grandparents give financial support, with nearly one in five putting the money directly into savings on a regular basis, and one in ten doing so occasionally, so by investing the money into a Junior ISA on the child’s behalf their money will benefit from investment returns and go even further.
“Some families are saving towards goals, such as university costs or travelling, for when the money can be accessed at age 18. However, half of maturing Junior ISA customers choose to keep the money invested for longer term goals, such as property deposits. These customers’ savings can go into a standard adult ISA or can be transferred into the new Lifetime ISA that benefits from a 25% government bonus on contributions of up to £4,000 per year.”
Any child under the age of 18 can have a Junior ISA, unless they already have a Child Trust Fund which is another long-term child savings product, that works much like a Junior ISA but is now closed to new accounts. A OneFamily Junior ISA can be opened online, from as little as £10 a month and parents have a choice of two funds to invest into.
To find out more about OneFamily’s Junior ISAs visit: https://onefamily.com/junior-isa/
[i] Average payment £32 a month, given by two people = £64, over 12 months = £768
[ii] Research conducted by Opinium research between 26 and 30 May 2017 amongst 2018 adults