Forester Life Junior ISA Review
Setting up a savings account for your kids is one of the wisest and most satisfying financial moves that you can make. Just imagine the pleasure you will take in years to come when you see they have a lump sum they can use for studying, for buying their first car or for whatever else they need money for.
However, when you are planning a long term investment like this, it pays to think very carefully about the decisions that you make. In this Forester Life Junior ISA review, we take a closer look at the features of the Junior ISA offered by financial services provider Foresters Financial and also give you more information on how Junior ISA’s work.
How Does It Work?
A Junior ISA is a tax-efficient way of putting money away for children on a regular basis for their future. Currently, you can save up to £4,080 in this tax year, with a minimum monthly investment amount starting at just £10 a month with Foresters Financial.
Of course, as it is an ISA, everything about it is completely tax free too. The money you put away is regarded as a gift for your child and your child won’t be able to access the money until they reach the age of 18.
One of the most interesting aspects of this savings account is that the money you save each month is then invested into a balanced portfolio by the experts at Schroders, who are one of the world’s leading independent investment managers. In fact, what they do with the cash is invest it in a mixture of stocks and shares together with other holdings that will bring a fixed return.
A big advantage for those parents keen to see their money put to good use is the fact that the only charge with the Forester Life Junior ISA is an annual management charge of 1.5% and then 1% after 10 years. Unlike some other providers, they also don’t charge entry, exit or transfer fees.
Another good idea with this Junior ISA account is that it is designed to keep up with inflation. It does this by increasing the amount you save automatically every year if you opt-in for this feature. This is important if you think about how much difference inflation could make to the savings amount over a period of a number of years.
If you just want to go ahead and arrange the account then this is done with just a few simple steps on the Foresters site. You just go through a few questions that ensure that your family is eligible and suitable for this type of savings account.
Managing Your Account
If you set up your account online then you will get 24/7 instant access to it from then on. This means that it will be incredibly easy for you to keep track of how it grows and how much you have paid into it.
The product is also backed up with a good level of customer service that makes it easy for you to phone, email or write to them with any questions. This is important when you consider that this is an account you probably expect to be saving into for a long time from now on.
Who Is It Suitable For?
This is the ideal sort of savings product for parents who want to make sure that their little one has a nice lump sum waiting for them when they turn 18. It is worth bearing in mind that they can opt to keep the money in there when they reach this age, in which case it will automatically became an adult ISA account.
Of course, this isn’t just about putting money away and expecting it to be exactly the same amount when your child reaches 18. The fact that the money is invested in a mixture of interesting ways means that you can look to see the amount you put in grow over time. This makes it perfect for those parents who want to get as much money waiting their child in later lifer as possible. If you think that stocks and shares are an interesting kind of investment but don’t have the chance to research possible investments on your own then this is a good alternative.
It’s worth remembering, though, that as the money you put into a Junior Stocks and Shares ISA is invested into the stock market, meaning you could also get back less than you put in if the value of the investments were to fall.
Saving money on behalf of your child is a wonderful thing to do, especially when it is as easy and potentially rewarding as it is with the Forester Life Junior ISA. This is the sort of investment choice that your whole family could look back on with pride and satisfaction in the future.