Help with cash ISA

🤝 Help
1

Hi everyone,

I am completely new to this, I have put some money away for my children for when they get older (in a bank where I hold a current account).
It is in a normal child’s savings account so it isn’t increasing or decreasing to my knowledge.

I don’t really understand much about accounts/investments etc so I am weary about doing anything with these funds.

I read about the trading 212 cash ISA and wondered if my kids would benefit from me moving it into this?

Is this safe though? It won’t go anywhere/I won’t lose their money?

Many thanks for any help - it is much appreciated

Natalie x

2

If you want to play safe, Junior Cash ISAs, hands down! As a parent you have full control until kids are 18. Depending on how old your kida are you could choose a stocks and shares isa or a combination of the two. If stocks and shares isa is considered it needs to be a min 5 year plan imho.

3

You need to be 18 to open regular cash ISA. You need a provider who offers junior ISAs at this point.

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4

MoneySavingExpert website would probably give a much better answer.

Personally myself, I know what I was like when I was 18-30, so if/when I have kids, I would want to put money aside for them, to give them at a time of my choosing. To say help with a flat deposit once they have graduated so they don’t rent for years.

Check out the long term return on cash vs investing. Generally investing long term as I suspect you will be, then you can ride the volatility from investing and give them a better return than cash. I would potentially setup segregated accounts for them invested in things like VWRP, HMWO, FWRG(I think it’s this) and leave it be.

Please do not take this as advice but just a suggestion. Do your own research, understand your own goals and risks and base your decision on that.

5

Hi Natalie,
Like @Mark3 mentioned you cannot open an ISA for someone under 18. Depending on their birth-year you can either open a child trust fund or junior isa, neither are supported by T212.

Also please be careful while taking advise from “people on the internet” especially if you are inexperienced.

It pains me to sound like an old man in app-moon-trading-stonks era but your high street bank and or citizens advice bureau may help you get started and you can then branch out (if you want to) once you get more experienced.

6

I could put it into trading 212 ISA in my account though?
Is trading 212 safe?
Can you take your money back whenever you need to?

7

Yeah that’s what I would do if I had kids.

212 is regulated by the FCA to offer the services they provide in the U.K. the Cash ISA has the usual 85k government guarantee.

The S&S ISA - your assets are segregated so in the unlikely event 212 or another broker went bust, they should be transferred over to another broker.

Yes.

^Above is just my take. Someone can correct me if they think anything’s incomplete / wrong.

If you are using the cash ISA - the rate is flexible.

8

I like the idea of semi-trolling my kids by putting it in a junior Sipp so they can’t access it for decades.

Think of that sweet, sweet compounding.

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