“Putting money in your children’s JISA is the very epitome of long-term investing. Holding cash in such an investment guarantees a loss of money in real terms over the longer term”
“While there may be some stock market jitters at the moment, over the longer-term equities have proven to dramatically outperform cash. Regardless of whether you are investing for your grandchildren/children or indeed yourself, at the very least you want to ensure the value of your pot today increases sufficiently to ensure it retains its purchasing power as prices gradually increase (e.g. over the past 6 months the price of a pint of milk has increased by over 8% (ONS) – therefore your money held as cash buys you less due to the impact of inflation)
£555m flowed into Junior Cash ISAs in the latest year – up nearly £40m from the previous year (from £517m).*** In addition, the annual contribution limit (£9,000 pa) for Junior ISAs refreshes in April and many may be preparing to deposit more into their child’s Junior ISA.
“Favouring Cash ISAs over investment ISAs is part of a broader issue where UK savers have hesitations about short term fluctuations in the stock market. Investors should not be put off investing in equity markets due to the short-term volatility, especially when they’re saving for a 20 or 30 year horizon.” adds Charles Incledon.
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