While your children are still young, there are still many years before they need the funds that have been saved for them. Therefore speculation in an investment tool that carries proportionately higher risk, but also offers greater rates of return, can be incredibly attractive and useful to boost their future nest egg.
When it comes to choosing the best Individual Savings Account for your children, many find that the benefits that can be obtained by the stability and security that a cash ISA can offer are far outweighed by the financial gain that can be achieved with a stocks and shares investment.
However, when it comes to managed Individual Savings Accounts there are many circumstances where a significant proportion of the annual growth achieved by investing your funds on the stock market have actually been eaten away by the charges and fees that this type of venture can attract.
With initial set up fees and annual charges levied as standard on Children's Equity ISA's, the investment itself may experience significant growth that is never actually seen in your child's account. This reduces the value of your investment significantly and erodes the future benefit that your child will receive.
In this situation, the Self Select Junior ISA from investment providers such as Sippdeal can be exactly the solution that many parents are looking for. Not only does this type of ISA provide you with more flexibility, but a substantial number of Self Select ISA's charge no initial cost or annual fee.
If the only fees levied on your account are charged when you buy or sell stocks, then you can easily balance the cost of the ISA with the income you are achieving to make the very best of the money that is intended for the benefit of your children's future.
But the cost efficiency of running a self select ISA is only one of the benefits that a parent can take advantage of.
Such an investment product has all the tax benefits of the other types of Children's ISA but it also enables you to invest in the kind of companies that you believe are going to add benefit to your children's lives and improve the world in which your kids grow up.
Rather than be limited to the funds that are available from the provider that you choose, a self trade junior ISA gives you the power to look across the entire financial market and choose from a variety of products that are not only going to make the best of your children's money but could also improve the environment as a whole.
So when you are trying to choose the type of investment product for your children, take another look at the self select junior ISA. It can give you opportunities for growth that a junior Cash ISA may not be able to provide, but also gives you the control to ensure that everything possible is done to make your children's future as bright as it can be.