Investing early can prove to be advantageous later in life and tax-efficient investing in the form of Stocks and Shares ISAs or Junior ISAs (JISA), could make your money work a lot harder for you than it would in a traditional savings account.
A Stocks and Shares ISA allows you to build a tailored investment portfolio that takes advantage of the long-term potential of the stock market, without paying any tax from the income you earn. For the 2020/2021 tax year, you can invest a maximum of £20,000 into a Stocks and Shares ISA, which you can choose to invest in a range of bonds, equities, property and private equity.
Much like a standard ISA, a Junior ISA allows the account holder to invest for their children’s future and benefit from returns on their investments completely free of tax, however, they can only access the funds once they turn 18. This makes a JISA a great option for further education, or purchasing a car or perhaps a deposit towards their first house.