The Best Junior Stocks & Shares ISA 2024 - Invest for Free?

Platforms in this video:
1. Vanguard - bit.ly/Vanguard-Toby
2. Hargreaves Lansdown - bit.ly/HL-Toby
3. Fidelity - bit.ly/Fidelity-Toby
4. AJ Bell - bit.ly/AJBell-Toby
5. Interactive Investor - bit.ly/II-Toby
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Timestamps
0:00 - Junior ISA Rules UK
1:02 - Vanguard UK
4:07 - Hargreaves Lansdown
6:21 - Fidelity UK
8:36 - AJ Bell
10:15 - Interactive Investor
11:19 - Summary and What's my BEST reccomendations

[@Gudha_Ismintis]

Would you consider making a future video for late starters (over 40s) with a view angled toward an effective (as of 2024) = 25 year investment strategy please?

[@Andy72668]

Good idea - Toby please!

[@jacc88888]

Yes, great idea.

[@Silverback.Timelapse]

Great idea, I'm 48 and only just started investing £200 per month in ftse 100 & s&p 500. Would be good to know other good options for getting the kids off to a good future.

[@redemption5294]

​@@Silverback.Timelapsewhat provider you suggest to go with for investing?

[@Silverback.Timelapse]

@redemption5294 I've gone with vanguard, low fees and easy to use.

[@epicchess2021]

Thanks for the video. Only thing I’d mention, as a U.K. person who’s spent many years learning all this as well as the hidden fees, is this doesn’t talk about the very nasty hidden cost of fx fees, which are horrendous on some platforms eg interactive investor, so if you buy an index fund denominated in dollars for example, even if you just regular drip feeding it’s horrendous in additional cost! I buy a lot of USSC you see. I’d love to see more financial KZbinrs talk about this because barely any day, eg a video title like ‘the nasty costs they hide from you’, thumbnail ‘the dirty truth’ , something to that effect haha

[@Pegaroo_]

Can you do a video like this but for SIPPs please 🙏

[@jacc88888]

Very helpful video. Thanks!

[@Macrike]

I have my kid’s JISA with Vanguard and my own LISA with HL. I didn’t know they have a free JISA product, so I may very well consolidate to save money. Thanks for the tip!

[@valerienewbatt9678]

Fantastic video as always Toby

[@valerienewbatt9678]

Excellent video Toby

[@Subject8931]

For ii ive just learnt that the JISA, even though they're free to have on the account, when paying for one of their plans, doesn't add up to use for monthly payments. each investment into a fund cost £3.99 per transaction, per account. If you invest £50 p/m for 2x kids, that's 8% in fees each month per £50, per account, the costs dont add up unless you save up all year and perform one transaction. Might work out better if transferring large fixed amounts without regular savings. I've just opened HL accounts for the kids JISA accounts as they seem to be free as per the video. Thanks for sharing 😄

[@ShaneJackson]

Amazing this is exactly what I needed

[@TobyNewbatt]

Welcome!

[@tomswain2900]

This is awesome! Thank you Toby, hugely appreciated!

[@TobyNewbatt]

Welcome hope it helps!

[@tomswain2900]

@@TobyNewbatt The only problem I’ve found with Vanguard is the inability to purchase fractional shares. When you only invest 2 x £50 for two children a month, this can lead to quite a bit of cash not invested until you meet those thresholds to buy into ETFs. Does HL allow fractional purchases do you know?

[@princhipehdesigns5922]

Great video, I like how transparent we you have been in the entire video, I was able to make a decision for my child now.

[@ben_______123abc]

Can you "transfer" funds from a junior cash ISA to a junior stocks and shares ISA?

[@pravsamra7537]

Thanks Toby. Can you have multiple JISA with different providers similar to new adult ISA rules?

[@TobyNewbatt]

No just one of each im afraid - one junior cash isa and one junior stocks and shares isa 👍

[@travellerseko]

Definitely great video. I’ll open JISA with HL as it is completely free.

[@javasports5348]

Ia ir free if you buy stocks ? Do they pay fees?

[@robertmills4591]

Ah man! I just opened one last week for my daughter. I'm very glad you came to the same conclusion as me!

[@TobyNewbatt]

Nice one 😎

[@johnnyg3606]

With HL, do you have to buy complete units of funds (like Vanguard's FTSE Global All Cap), or would monthly investments of £100 purchase fractions of these each month?

[@TobyNewbatt]

a mutual fund is not bought in complete shares like an ETF needs to be - so this is why £100 a month into a mutual fund would give you exactly £100 worth of the investment.

[@TheShad0wMan85]

Hi Toby, the minimum amounts on vanguard only apply to initial deposit, after that there's no limit. I had this confusion and they confirmed on the phone.

[@TobyNewbatt]

Useful to know thank you that explains things!

[@slabbygabby]

Can you do one on junior Sipps

[@robertsoso7093]

This is great video Toby, I’m actually going to get an junior isa for my little one, She is 3 now and this is going to be a great gift for her 18 bday Thank you for the review of those providers

[@TobyNewbatt]

Glad it was helpful!

[@timg1246]

Getting to grips with costs can actually be very complicated. Funds have a charge of about 1%. Depending on the size of the investment, that can easily outweigh the trading costs of buying ETFs.

[@TobyNewbatt]

Indeed - even ETFS can have high fees too, it's really about active vs passive investing.

[@massive_crypto7126]

Would be nice also to know what happen to ISA , JISA in case moving out of the uk after many years of investing.

[@adrianl5899]

Google 'Individual Savings Accounts (ISAs) If you move abroad' and you'll see the relevant information on the gov website

[@TobyNewbatt]

This is the answer (Gov source below) If you open an Individual Savings Account (ISA) in the UK then move abroad, you cannot put money into it after the tax year that you move (unless you’re a Crown employee working overseas or their spouse or civil partner). You must tell your ISA provider as soon as you stop being a UK resident. However, you can keep your ISA open and you’ll still get UK tax relief on money and investments held in it. Source: www.gov.uk/individual-savings-accounts/if-you-move-abroad

[@Maria-tn5ig]

Can you only have one Junior S&S ISA or as a parent you're allowed several with different providers as long as it's £9000 investment in total per year. Thank you

[@samsungdisc52x]

1. Have opened one ISA account in HSBC ( LOY_ISA_Adv) ( In OCT 2023) and deposited 20000.00 GBP and withdraw 5000.00 GBP in March 2024 . 2. I opened one more Cash ISA in NatWest in March 2023 and deposited 20000.00 GBP 3. Have opened in March 2024 one more ISA account ( march 2024) and deposited 20000.00 GBP and withdraw all amount in one day in Halifax . Here my question is can i have any tax issues or penalties from HMRC as i have two ISA accounts with 20000.00 GBP amount in each account ? Requesting for your kind advice

[@manimat9994]

Hi tobbi can u pls make video about junior SIPP pls

[@TobyNewbatt]

Might be one for the new tax year thank you

[@darrenb1522]

I haven't checked recently if there others but Fidelity do a Junior SIPP with no charges as long as you invest in Funds. (similar to their JISA)

[@aturan-fo1qt]

Hi Toby, using both AJ Bell (jr SIPP) and HL (jr ISA), unfortunately their apps are rubbish and the UX designs are awful, not user friendly. In addition to your HL comments, HL doesn't allow index fund investment below £100 (except monthly subscription, it allows £25+). And if you buy ETFs, HL does not accept below 1 share (it means no fractional ETF buying), so it is not flexible.

[@TobyNewbatt]

Thanks for the heads up - £25 a month is very cheap I;m not sure i'd put that as a negative point. Agreed the UX isnt great but its a free Junior ISA thats what the video is about :) I dont use them for my own ISA or SIPP - obviously thats a different story

[@aturan-fo1qt]

@@TobyNewbatt I wish InvestEngine provides jr ISA&SIPP but they say there is no plan for near future.

[@OfficialCcallum]

HL Sounds similar to Fidelity. I use Fidelity for my child's JISA, I don't find the app experience user friendly and for ETF's (maybe also for individual stocks) you can only buy whole shares. With the spare cash that builds up from the change of buying a whole share I'm strongly considering moving the JISA to HL so I could make the occasional ETF share purchase without a high fee. Currently Fidelity charge £1.50 for the regular investors plan and then £7.50 for extra shares purchased outside of the plan.

[@aturan-fo1qt]

@@OfficialCcallum thanks for sharing

[@riddlergorshin]

T212 where you at baby?😂. If t212 did a jisa and sipp…

[@TobyNewbatt]

it's not worth the hassle for them tbh but I agree!

[@javasports5348]

Cash isa paying just 3% of interest. Very little