Your child can have a cash JISA, a stocks and shares JISA, a child savings account and even a Junior Bond at the same time. Different types of accounts are better for different purposes and situations.
Junior ISAs are geared towards long-term saving and giving your child a boost when they turn 18.
Since no-one can take the money out before then, they’re a better option if you want to build up a lump sum that your child can then use to help them get a head start in their adult life.
This could mean moving the money into a different product, such as a lifetime ISA or adult ISA, buying their first car or going to university.
Child savings accounts are easier to withdraw from, as the money isn’t locked in for the child.
Since your child can manage their own account from a young age, they’re a good option to teach them about the importance of savings and managing their money.
Rather than using them for long-term saving, child savings accounts could be useful to help your child save up their pocket money and gift money so they can spend it on larger purchases later on.
Ultimately, the type of account you open for your child is up to you.
While the money in a JISA is locked in for the child until they turn 18, the money in a child savings account isn’t. This gives JISAs an advantage when it comes to long-term savings, while child savings accounts can be really useful to give your child their first taste of savings and teach them useful money management skills for the future.