Blog Article

Their first car,  house deposit or debt-free Uni?

Their first car, house deposit or debt-free Uni?

Date: 25 February 2021 | By: cosgrove

During these uncertain times, it’s more important than ever that your money works harder for you and your families. One of the first steps to achieving this is to make sure any returns on your investments are as tax efficient as possible, so it’s essential you don’t miss out on your tax-free allowances.

As well as ensuring, if you can, to maximise your own ISA allowances you may wish to consider helping your children or grandchildren to use some or all of their allowances as well?  As mortgage deposits continue to rise and the typical cost of a year at university stands at £9,000, putting some regular savings aside for younger family members has never been more important.

Junior ISAs

Junior ISAs  offer the same tax benefits and investment opportunities as full ISAs but with a limit of £9,000 for the 2020/21 tax year. So, just three years contributions at the current allowance could go a long way to avoiding the worry of leaving university with a mountain of debt. The further good news is that if you contribute to a Junior ISA it does not affect your own ISA allowance, currently £20,000 in the 2020/21 tax year.

So, whether you want to set aside money for their education, a house deposit or their first car, Junior ISAs are a great way to start saving.

Already have a Junior ISA?

If you have existing Junior ISAs for your family that are invested in cash, and if there is at least 5 years to go before any access may be needed to the money,  it would be worth talking to us about transferring the money into a stocks and shares Junior ISA instead.

Act now! Remember you only have until 5th April 2021 to use your 2020/21 ISA and Junior ISA allowances. If you don’t, they will be gone for good.


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