Scottish Friendly My Select Junior ISA Review
There are some fantastic Junior ISA accounts out there just now, and the Scottish Friendly My Select Junior ISA account is definitely one to bear in mind. If you have the idea of putting money aside for a youngster then is this the right choice to make?
Well, this is a tax efficient savings account that lets you invest anything from £10 each month up to the full annual ISA allowance. It is a good choice of investment plan for someone looking to give a youngster a great financial future, so what is it all about? This is what we’ll be looking at in this Scottish Friendly My Select Junior ISA review.
Varying Investment Amounts
The first thing we should mention here is that the Scottish Friendly My Select Junior ISA is a Stocks and Shares Junior ISA account. This means that any money you put into the account will be invested into the stock market through a choice of investment funds which you will select. Hence the name, ‘My Select Junior ISA’.
With any investment account for a youngster it is important to be able to vary the amount you are investing according to the changing circumstances in your life. For example, you might be happy carrying on with a small monthly amount for a long period or you might prefer to increase the payments for a special reason. This is all possible with the My Select Junior ISA account and you will feel happy knowing that you have full control and can change the amount whenever you want to. Even better is the fact that you can stop the regular payments and then start them again as you choose.
The starting investment to open a Scottish Friendly My Select Junior ISA is a minimum of £10 per month, although you can also choose to make a £50 lump sum investment instead, or even combine a lump sum with monthly payments. This lets you stay fully in control of how much you save each month or year, without feeling obliged to over-stretch financially or limit yourself to the initial amount.
Who Is It Aimed At?
If the investment levels in the Scottish Friendly My Select Junior ISA seem right for your needs, then you will want to know a bit more about who this plan is aimed at. Basically, it is for the parent or guardian of a child under the age of 18 who wants to set up an investment in the youngster’s name.
The child can then access the money once they reach the age of 18. As it is an ISA, you can be sure that it is a way of investing without having to worry about tax eating into the profits.
There are many reasons why you might want to set up a Junior ISA for your child. Perhaps you will do it with one eye on their further education or on them buying a car or property once they get a bit older.
It doesn’t matter what the reason for saving is, you can just keep on putting money into the account each year – up to your Junior ISA allowance amount – until your child is ready to spend it on what they most need after they turn 18. You can then enjoy seeing how the youngster goes about using the money to get a financial foothold in life once they become independent.
Choosing the Right Fund
A very useful aspect of this ISA is that you get to choose the perfect fund for your needs. In this way, you can find the right way to make a smart and sustainable investment that truly suits you and your child.
A list of the different funds that you can choose from is available for you to look at on the Scottish Friendly Website and includes the likes of an International Company Bond Fund, a Higher Fund and a UK Active Fund. Each has its own set of objectives and risk profiles, so you will want to spend a few minutes looking into the options before choosing.
The first decision you are likely to make is between the lower risk and return funds compared to the higher risk and return options. Once you have an idea of which type to go for, it will then be easier to choose a specific fund.
The My Select Junior ISA also gives you the option of opening up several different ‘policies’ all in the one Junior ISA account. This means that you can have different investment pots for different purposes – such as one pot for a home deposit and one to buy your child’s first car. You may, therefore, want to take more investment risk with one pot than with another.
Easy to Set Up and Maintain
Perhaps one of the reasons that not everyone sets up a savings account for their children is that they see it as being something that is difficult or time-consuming to do. The good news in this respect is that setting up a Junior ISA with Scottish Friendly couldn’t be easier.
You can very quickly apply online and set up the account. The online application form gives you a simple step by step approach that should see you set it up in next to no time.
This is certainly an easy option for anyone who is keen to help their child get started in life. It is the kind of no-fuss savings account that you can quickly set up and then watch as it builds up nicely over time.
There is no time like the present for getting started on giving a young person a future to look forward to. If you like the idea of a tax efficient savings scheme that gives you just the right degree of flexibility, then the Scottish Friendly My Select Junior ISA could well be a solid choice.
Remember that the value of investments can rise as well as fall, meaning your initial capital may be at risk.