JISA: A couple decides to move from cash to stocks and shares. Interest rates are ‘quite bad,’ thus ISAs are a good way to beat them.
ALL PARENTS want to provide for their children in any way they can, and for Mark Gould, 39, it meant risking switching from a cash JISA to a stocks and shares JISA.
Mr Gould and his wife Polly started a JISA for their two daughters, Jessica, 5, and Ellie, who is just nine weeks old, when they were born, with the goal of developing a savings account for them.
However, as interest rates fell, the couple decided to swap the girls’ cash JISA for a stocks and shares JISA, which could provide a better long-term return.
Mr. Gould, Bibby Marine Ltd’s Head of IT, and Mrs. Gould, who is on maternity leave from her employment as a midwife at Warrington NHS Hospital, currently pay £50 monthly to each child’s account, with additional contributions from grandparents.
“When Jess was born, I created a cash Junior ISA with Nationwide because I wanted a secure way to put money down for her.
“However, interest rates aren’t wonderful, and they’re actually rather bad! This is excellent for debt, but I want to be able to help my daughters when they get older,” Mr Gould said.
For many young parents, these interest rates appear to be a hindrance to their children’s ability to construct a future.
This is what drove Mr. Gould to look for other choices so that his daughters’ money wouldn’t be eaten away by inflation before they could even utilize it.
“I chose Beanstalk’s Junior ISA in part because we’ve used KidStart for cash-back on our internet shopping for years, so it seemed natural to use the same system,” he explained.
Throughout the month, the duo adds to the JISA with round ups.
“Since I don’t carry cash anymore, I’ve been making more and more of my everyday purchases with my contactless debit card, so instead of putting change in a piggybank, I’m putting it in the kids’ JISA.”
The software is particularly user-friendly, and it includes a number of capabilities that are suitable for those in similar situations to the Goulds.
“We encouraged their grandparents to engage through the app, and they’ve enjoyed being able to be a part of shaping Jess and Ellie’s futures – especially at this time.”Brinkwire Summary News”.