Kids Savings Accounts - best options for most gain?

Salaam all,

i have been saving money for my kids for a while now just in a normal savings account and removing the interest when it builds up with no intention of reward, however people are telling me i am just loosing money sitting on it like this and i should open a junior stocks and share sisa etc, are these permissioble, any recommendations? i dont mind tying the money away till they are 18 but never really looked into the options available as back when i started saving i used to think stocks and all this investment stuff was too complex and borderline getting into haraam so didnt risk it, now im a lil more knowledgable thanks to this site been investing ina decent porfolio myself and wnat to make something with the kids money too.

ANy input would be appreciated.any halal account sor recommended accounts where they cna get a good decent 5 or 10% gain ? atm i have instant access to the money not locked away but dont mind locking it away.


Walikum as salam

Pls refer to Halal Children Savings Accounts and feel free to ask any questions.


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thanks for that very helpful, just a question regarding fees, as i dont understand them, is ajbell diy by selecting the funds like you said, cheaper annually on fees than say going with the red rose one. i can see 1.56 % is red rose fees, but cant figure out what aj bell ones are if iw as to manage myself?

can you clarify? just the percentages for shares or transactions confusing me a little on that one. as has different percentages. if its not much difference or only a little bit maybe better to get red rose to manage.


glad you find it helpful.

Yes AJ would be the cheapest option that I have seen. Their platform fee is 0.25% and the HSBC fund is around 0.54% so the total would be 0.79% Vs 1.56% you mention for redrose. This is like 50% cheaper and makes a HUGE difference in the long run. you may find this thread useful on platform fees.Comparing Platform Fees

If you do decide to go down this route then pls select the “BC” share class of the HSBC fund as this share class will reinvest the dividends automatically.

Hope that helps.


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jzk will look into setting this up tonight, i need two. just as a side question, in the event of death as ill be managing it, i assume just death cert req for wife to take over etc and manage till their 18?

also i was thinking 90% HSBC Islamic Global Equity Index “BD” fund and like your other post 10% to iShares MSCI EM Islamic UCITS ETF

this should do the trick, one kid is 4 and one is 2 so long term should pay off.

i would think so but the easiest thing is to call AJ bell and ask or google.

yes, I think its a good combination and inshallah will be good in the long run. One thing to clarify is to go for “BC” version and not “BD”. For your purposes, you need the accumulating version which is “BC” - they have just added to their platform and was not available at the time of writing my earlier posts.

Good luck

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jzk, just waiting for them to get back to me on when my account is open and will get on with it.

zeeshan since your versed in this whats your take on a full market crash with current pandemic etc…

talkin to family and they reckon its not worth tying money away as dont know who will come out of other end of it… i was thinking itll just be a wave the companies in these funds are big yes shares wil drop but long term theyll get throuhh and itll work for me. so just ride the wave. whats your thoughts

also just seen some of your other posts. and the portfolio of this fund. wow its quite comprehensive. for my own long term. ive been playing with a pie on trading 212. majority of the companies in my pie are ones listed on this fund.

is their anyway to get this fund on trading212 or is ot a case of creating a pie with all these companies individually on there?

its been going four years now with success but i think i might need to move this to aj bell to so i can access these proper index funds. whats yoir thoughts? my wifes also with wahed invest as she just wants to put in and forget. and is very conservative in her options but i feel its earning very little. this could do we moving too… maybe this question is for another thread. dam i wish i looked into this sooner

just got on the account and had a look, under regular investment monthly etc, you cant use this option, only one that comes up is BD fund, bc doesnt seem available for regular investing, does this just mean i need to reinvest dividents manually?

Dealing costs are £1.50 per investment on regular investments, does that mean its the same charge every month where i pay in?


There shouldn’t be any good reason not to include BC sub fund for regular investments. It could just be a hick up. Better to call AJ Bell to clarify.

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so ive just spoken to them and it seems bc fund isnt set up in regular investment but he is going to look into seeing if that can be done. but there is a 1.50 deal charge per monthly payment in, making it 18£ a year, this to me, doesnt seem cheap lookign at fees with other providers now? unless im misunderstanding something? for example the red rose managed one seems cheaper?

its newly setup fund and hopefully, they can set it up for regular investing. Even if they can’t, you can do it in the BD version. its the same thing but you would need to reinvest the dividend manually - I think it comes every 6 months or so. They are generally very helpful so do follow up.

Have you seen a dealing change of less then £1.5 anywhere? …I guess depending on how much you are investing monthly, you may want to do it quarterly instead of regular investing. That would be a charge of £1.5 every quarter instead of a month.

The ongoing charge for redrose is 1.56% twice the charge via AJ bell of 0.79%.

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Depends on how much you want to invest.

If you are investing £25 per month, that would be 1.56% of £300 = £4.68 annual charge with red rose (assuming there is no growth for simplicity) compared to AJBell £18 for 12 transactions plus 0.25% of £300 = £0.75, total £18.75

But, if you invest full junior isa annual limit of £9,000 in 12 transactions, that would cost £40.5 with AJBell and £140.4 with red rose.

The compounding effect will grow over the years. Now you can do your maths depending upon what you intend to invest every month/year.

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i don’t think that anyone can predict the future. It does feels like that there may be a correction in the short-term but that has been looking for past 10 months or so and the market has been rallying :slight_smile: . As you rightly said, you are a looong term investor and should be able to ride out any fluctuations - this video might be of your interest - Invest Now or Wait

Not sure if you are planning to start with a big lumpsum, if yes, you may want to consider “Dollar Cost Averaging - Is It A Good Investment Strategy?”

It’s actually 0.25% AJBell vs 1.6% redrose. Both use the same HSBC fund and the fund charge of 0.54% is applicable for both.

T212, unfortunately, don’t have funds on their platform.

i think its a good idea, its difficult to be “lucky” all the time so best to put it in a diversified portfolio of investment (passive index fund).

depends on what her investment horizon is. If the money is required in the shorterm, then its recommended to have a cautious and obviously more equity for long term investment. A guide from Vanguard below.

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jzk to both of you. that clears that up nicely
will try quarterly but i think the regular investor is monthly only. nvm. as im not doing much of a lump sum but going with monthlys red rose maybe be better for now till the pot gets bigger then maybe diy it again later with ajbell

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Yes on a smaller monthly investment, redrose does appear to be cheaper until your pot gets bigger (roughly when it cross £2,000 mark).

Good luck.

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redrose is more of an investment manager rather than a platform which lets you pick funds/stocks independently. They are selling this Shariah Junior ISA as a product. The ongoing charge of 1.62% (1.57+0.05) should be all-inclusive with the fund, dealing, platform charges included.

But it’s good to call and double-check if anyone is investing with them.