A Junior ISA (JISA) is one of the easiest ways to save for your child’s future – and if you choose ethical investments, you can help them learn how money can do good as well as grow.
Start early and even small amounts can add up. According to Hargreaves Lansdown, putting aside £20 a week from birth could build a pot of about £26,000 by age 18 (based on five per cent annual growth). That’s a pretty useful amount towards university fees or a first home – both of which are becoming increasingly expensive.
You can invest up to £9,000 a year in a JISA, tax-free. Once the account is open, friends and family can contribute too. Your child can start managing the portfolio themselves from age 16 and access the pot at 18.
There are a number of online platforms where you can invest sustainably on behalf of children, while teaching them about environmental and social challenges in an age-appropriate way.
Here, we round up good options for platforms offering ready-made portfolios for an ethical JISA (i.e. the investments are all picked for you, meaning minimal effort required):
Dedicated sustainable investment platforms/apps:
The Big Exchange
Annual fee: 0.25 per cent
Fund management fees: Typically ranges between 0.8 per cent and 1.8 per cent, per year
Minimum investment: £25 per month or £100 lump sum
Co-founded by The Big Issue, The Big Exchange is an online investment platform listing only funds that are proven to make a positive difference to the planet and its people. Each fund is impact-assessed and awarded a gold, silver or bronze medal for transparency on its contribution to positive change.
A free mobile app makes it easy to manage investments on the go.
For more on The Big Exchange, see our full review.
Simply EQ
Annual fee: 0.99 per cent for investments up to £100,000, then reducing
Fund management fees: Typically 0.25 to 0.6 per cent per year
Minimum investment: £1,000 per month or a £50,000 lump sum
Simply EQ, from Good With Money ‘Good Egg’ company EQ Investors, offers three main impact portfolios for a child’s JISA: Positive Impact,‘ ‘Future Leaders’ and ‘Climate Action’ These actively managed portfolios aim to generate solid returns while tackling global challenges such as climate change and social inequality.
For more information on Simply EQ, see our full review
Robo-advisers offering ethical JISAs:
Annual fee: 0.6 per cent
Fund management fees: Average of 0.7 per cent (much higher than its standard plans at 0.16 per cent)
Minimum investment: £1
Wealthify, owned by Aviva, offers five ethical investment plans that exclude sectors such as tobacco, arms, pornography and gambling, while limiting oil and gas exposure. Its ethical portfolios invest in companies with strong ESG credentials and a positive social and environmental impact.
Beanstalk
Annual fee: 0.5 per cent (plus underlying fund costs around 0.12 to 0.15 per cent)
Minimum investment: None – you can start with as little as £1
Beanstalk is a family-friendly investment app designed to make saving for children simple and inclusive. Parents, grandparents and friends can all contribute to a child’s JISA directly via the app.
It offers both cash and stocks & shares JISAs, with portfolios including ethical and sustainable fund options such as the Legal & General Future World ESG UK Index. Beanstalk also features round-ups and cashback tools to help grow your child’s savings effortlessly, making it one of the most accessible ways to start ethical investing for kids.
Traditional providers offering ethical portfolios for a JISA:
Scottish Friendly
Annual fee: 1.5 per cent up to £5,000, 1 per cent up to £20,000
Fund management fees: (covered in the above fee)
Minimum investment: £20 a month or £50 lump sum
Scottish Friendly, one of the UK’s largest mutuals, offers the My Ethical Select Junior ISA, which invests in an international ethical fund. It won Best Junior ISA Provider 2024 for the sixth year running at the Investment Life and Pensions Moneyfacts Awards.
Interactive Investor
Annual fee: £4.99 or £11.99 depending on your plan
Fund management fees: Varies from 0.2 to one per cent
Minimum investment: £25 per month or any lump sum
Interactive Investor’s ready-made Sustainable Growth portfolio invests in 12 ethically focused funds. You’ll need to already hold an ISA or Trading account to open a JISA with ii.
Bestinvest
Annual fee: 0.2 per cent
Fund management fees: 0.5 to one per cent
Minimum investment: £50 lump sum
Bestinvest offers two ethical portfolios for a JISA (called the Evelyn Portfolios), according to the risk level you are comfortable with.
- Evelyn Sustainable Adventurous Portfolio Clean
- Evelyn Sustainable Cautious Portfolio Clean
Bestinvest offers two ethical Evelyn Portfolios – Sustainable Adventurous and Sustainable Cautious – that balance risk appetite with positive impact goals.
Hargreaves Lansdown
Annual fee: 0.45 per cent up to £250,000 then decreasing
Fund management fees: Varies depending on the fund from 0.2 per cent to 1.03 per cent
Minimum investment: £100 lump sum or £25 per month
Hargreaves Lansdown, the UK’s biggest DIY investment platform, offers a wide choice of sustainable funds suitable for a JISA, including Liontrust SF Corporate Bond, FP WHEB Sustainability, and Janus Henderson UK Responsible Income.
Risk warning: Investments can go down in value as well as up in your child’s JISA, so your child could get back less than you invest.
