Jisas are one of the most popular ways of saving for children: £858m was subscribed to Jisa accounts in 2016-17. Around 61pc of this was held in cash, despite the fact parents have up to 18 years to save on behalf of their offspring.
Yet experts say this is a mistake and higher returns could be earned if the cash was invested in stocks and shares Jisas.
Jisas are designed to be long-term savings vehicles. Funds held in a Jisa cannot be accessed until the child’s 18th birthday when the account becomes theirs and the money used as they like.