Facebooktwittergoogle_pluslinkedinmailFacebooktwittergoogle_pluslinkedinmail 

Case Study: Benefit from starting early

Why starting a Junior ISA early can give your children an advantage

Pete and Eliza decide to start saving early for their newborn son Ben, so they open a Junior ISA and invest £250 per month into a managed portfolio of investment funds.

Over the next 10 years, they invest a total of £30,000 into Ben’s JISA. While markets go up and down, the portfolio grows at an average rate of 5% each year.

When Ben is 10 they stop making contributions but keep the portfolio invested. It continues to grow at 5% each year. By the time Ben is 20, he has an ISA portfolio worth £64,204.

Related articles

Junior ISA

post
One of the most popular ways to save for children is to open a Junior ISA. These are tax-free savings accounts that allow you to save up to £4,080 each year in a cash deposit or by investing in stocks and shares. There is no tax to pay whilst the money grows inside the JISA account and all withdrawals are tax free.

I have a question...

We're here to help. Quickly get to the answer you need by speaking to an EQ financial adviser now: Call 020 7488 7171 Mon-Fri, 8:30am-5:30pm
  • Search the EQ library

  • Find articles by theme

Some Free EQ Guides

10 Tips for Investing a Windfall
post

Coming into money isn’t something that happens often. Before you commit yourself to spending, investing, giving gifts or even giving up your job, here are some tips on how to make your windfall work for you in the long run.

Financial Planning Services
post

EQ is a Chartered Financial Planning firm able to offer a wide range of services to private clients including tax optimisation, retirement income planning and estate planning.

Final Salary Pension Transfers
post

The April 2015 Budget saw the most radical changes to the pensions landscape for a generation, but the new flexibility on offer is only available to personal pension holders. Members of final salary schemes can only access the new rules by transferring to a personal pension.

Saving Inheritance Tax
post

This guide explains how planning ahead of time can provide for – and in most cases reduce – the amount of tax that is ultimately due on your estate.

Spring Clean Your Finances
post

When it comes to money, it is fairly easy to get so entangled in the jargon that you lose sight of basic sound financial planning principles. This guide provides some pointers on important steps to take, and a few pitfalls to avoid, along the road to a healthy financial future.