4.4 Cash ISA vs Stocks and Shares ISA
A Junior ISA can be either a Cash Junior ISA or a Stocks and Shares Junior ISA.
A Cash Junior ISA works like a savings account. Your savings earn interest depending on the interest that the ISA provider offers you. However, you do not have to pay tax on the interest earned on your ISA.
Stocks and Shares Junior ISAs are more complex than Cash Junior ISAs.
The money held in a Stocks and Shares Junior ISA can be invested in a variety of different assets, such as shares of companies like Marks & Spencer or bonds issued by the UK Government.
You will learn more information about what the stock market is later in this course.
Quiz
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b.
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Moving on
4.3 Junior ISAs
