What can JISAs bring to your family’s finances?


There are many ways to help improve your family’s finances, but one particularly effective method is to open a Junior Individual Savings Account (JISA).

To help you understand why this can be beneficial, read on, where we discuss what this type of junior investment account is and how it can help your family’s wealth in the future.

Understanding JISAs

JISAs are specific investment accounts that allow you to grow savings for your child, whilst sheltering this money from tax.

The amount you can invest is determined by the annual JISA allowance, which currently sits at £9,000 for the 2023/2024 tax year. This money will be exempt from income and Capital Gains Tax (CGT).

When investing in a JISA, the savings cannot be accessed until your child turns 18, at which point the account becomes a standard ISA. At this point, the money can be withdrawn tax-free.

There are two types of JISA you can invest in – a cash ISA, or a stocks and shares ISA. You cannot open more than one of each type of JISA per tax year, and your allowance must be shared across both accounts.

What JISAs can offer your family’s finances

There are a wide range of things JISAs can provide for your family’s finances, which can include:

  • Tax-efficient growth

One of the main benefits a JISA provides is tax-efficient growth for your child’s savings. By investing effectively in your JISA, you can build a significant sum of money that’s sheltered from tax, to help towards your family’s goals.

By using up the full allowance each year, when your child turns 18, they can have a large sum of money to pay for things such as education or to help towards purchasing their first property.

In addition, any growth made from successful returns in your stocks and shares JISA will also be exempt from income tax and CGT – further increasing your tax-free savings.

  • Financial security for your children

Investing in JISAs can offer financial security for your children.

There are a range of different things which could impact your child’s wealth in the future.

For instance, there could be changes in your child’s personal life or career, as well as changes in the financial markets or tax rates.

However, with a large sum of tax-free money in their JISA, your child can have more wealth resilience to prepare for and navigate these impacts as they come.

  • Simple and effective account management

JISAs can also offer a more effective way to manage your investments when you open your account with a modern wealth management service.

This means you can receive expert guidance on building your family’s wealth with JISAs, and help you grow your savings in the right way.

For example, you can access online wealth tools to help you plan your JISA contributions in the future, for maximum tax efficiency. You can figure out how to maximise tax efficiency in your account, whilst also making realistic contributions that align with your circumstance.

This can help you manage your account in the right way, increasing your family’s chances of a successful financial outcome for the future.

Do you now have a clearer understanding of how JISAs work? And can you see how these accounts can be highly beneficial to your family’s wealth? If so, speak to your modern wealth manager to see how you can start investing in your own JISAs.

Please note, the value of your investments can go down as well as up.


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