Wealthify Junior ISA: A comprehensive review
Junior ISAs are fast becoming one of the most popular ways parents save or invest for their children, and Wealthify’s award-winning JISA product offers a high level of control over the way you build a nest egg for your kids.
With around 1.37 million subscribers, Junior ISAs are a widely used way to build savings on behalf of your child.
Acting as a tax-free wrapper, it’s possible to put aside up to £9,000 with an annual allowance in a JISA. Because of its tax efficiency, your child isn’t liable to pay any tax on their earnings or profits made.
Junior ISAs also come with plenty of flexibility, and you can either save using a Cash JISA or invest with a Stocks and Shares JISA.
If you’re looking to put money aside for your child’s future, Junior ISAs have been tailor-made to help provide youngsters with the best start to their adult life. This means that you can begin saving or investing as soon as your child is born, and the account balance can be withdrawn or transferred to another savings account when they reach 18 years of age.
18 years is a long time, so it’s only right that you use a JISA provider that you can trust.
With Wealthify’s Junior ISA being recognised as the ‘best Junior ISA’ at the Personal Finance Awards for seven years running, it’s certainly worth checking the provider out when setting up an ISA for your children, but is it right for your investing needs?
Wealthify JISA pros and cons
Wealthify is a popular platform for savers and investors alike and is backed by Aviva for added security, but what advantages and disadvantages should parents keep in mind when it comes to Junior ISAs?
Pros
Competitive fees: With an annual management fee of 0.6% of your child’s investments, it’s easy to build your nest egg without losing out on higher profits. There’s also no charge for changing your portfolio or transferring in or out of your JISA.
Ethical options: For parents who intend to stick to their principles, there’s the option of setting up an ethical portfolio for your child.
Transparency: Wealthify provides an easy-to-use calculator to help you to understand JISA fee structures and how much you could earn over time.
Simple layout: The website and investment app are both simplified for ease of use and quick access to account information.
Cons
Fewer customisation options: Compared to other DIY investment platforms, the ability for parents to get hands-on with their child’s JISA is relatively limited.
No direct access to financial advisers: Wealthify also doesn’t have human financial advisers on hand to help with investment decisions.
Now, let’s get to grips with Wealthify’s Junior ISA and explore why it stands out from other providers when it comes to offering value over time:
Simplifying investing
The great thing about Wealthify is that the platform caters to investors of all experience levels, and opening a Junior ISA has been made easy with easy-to-follow customisation tools and step-by-step processes.
Firstly, parents are invited to choose a plan. For investors, there’s a choice of five options, ranging from original to ethical plans. Wealthify will also ask how much you intend to invest and how payments will be made.
You’ll then be guided to the platform’s suitability quiz, which helps Wealthify to work out how best to start your child’s JISA in a way that matches your circumstances and risk appetite.
From here, Wealthify will create a plan that perfectly suits your wants and needs and manage it on your behalf, keeping it in line with your chosen approach.
Once your child turns 18, they will be able to access the money in their JISA and have the option to withdraw or continue to investit as they see fit.
Low Junior ISA Fees
When it comes to fees, Wealthify is a competitive JISA provider. For managing your investments, the provider will charge a flat annual fee of 0.6% of your JISA value, as well as there being investment fees to consider (typically around 0.16% for their Original plans and 0.7% for their Ethical).
Fund and trading fees vary, but Wealthify stipulates that better fees are negotiated than typically available.
Crucially, Wealthify won’t charge users for any deposits, withdrawals, transfers, or closed plans, meaning that there will be no nasty surprises when your child accesses their money later down the line.
Transferring to a Wealthify JISA
Wealthify has also implemented a hassle-free process for parents looking to transfer a Cash JISA or Child Trust Fund into a Stocks and Shares JISA.
To transfer an existing account into a Wealthify JISA, simply let the platform know by following the instructions online, and then the provider’s team of professionals will take care of everything.
However, it’s important to note that Wealthify will be required to move the whole amount of money into their JISA, because parents are only allowed one account of this type per child.
Choosing Wealthify
Wealthify is a highly user-friendly platform that has the ability to support parents who are new to investing, as well as experienced investors.
With competitive fees and a high level of transparency, Wealthify stands as a strong option for parents looking to build a JISA for their child’s future, regardless of whether they’re newcomers or holders of a pre-existing Junior ISA.
The above information does not constitute any form of advice or recommendation by London Loves Business and is not intended to be relied upon by users in making (or refraining from making) any finance decisions. Appropriate independent advice should be obtained before making any such decision. London Loves Business bears no responsibility for any gains or losses.
