Junior ISAs - your questions answered - Savings - Guides | moneyfacts.co.uk


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Junior ISAs - your questions answered

Category: Savings
Author: Tim Leonard
Updated: 14/06/2018

Junior ISAs were launched on 1 November 2011.

Below we've compiled some common questions about how this scheme works. We hope you find this information useful - if you have a question not covered here, please let us know and we'll aim to answer it.

Is my child eligible?

If your child is under 18 and does not have a Child Trust Fund, then they are eligible to open a Junior ISA.

Children who have a Child Trust Fund can now transfer to a Junior Cash ISA if they wish.

Will the Government contribute to my child's ISA like they did for Child Trust Funds?

No. The Government will not make any contributions into your child's Junior ISA.

Who offers Junior ISAs?

Banks, building societies, friendly societies and other financial providers offer Junior ISAs.

Who can open a Junior ISA?

A Junior ISA can be opened by anyone with 'parental responsibility' for a child or, if your child is between 16 and 18, they can open their own.

Grandparents can't open a Junior ISA for their grandchildren (unless they have parental responsibility for the child). However, grandparents will be able to contribute to the account once it is opened.

How much can we pay in?

You can save or invest up to £4,260 into a Junior ISA in the 2018/19 tax year (which runs from 6 April to the following 5 April).

Can the money be accessed?

Money in your child's Junior ISA can't be accessed until they turn 18.

What happens to the Junior ISA when my child turns 18?

The account becomes an adult ISA, preserving its tax-efficient status.

Can we invest in stocks & shares for our child?

Your child can hold one cash and one stocks & shares Junior ISA at any one time.

You can choose how you allocate money between the two, so long as you don't exceed the total £4,260 limit.

Other than the annual cap there is no limit on how you choose to save – you could place the entire allowance in a stocks & shares Junior ISA, although you then couldn't place any money in a cash Junior ISA in that tax year (or vice versa).

Will we be able to transfer to a different Junior ISA later on?

Yes you will, although your child will only be able to hold one cash and one stocks & shares Junior ISA at any one time.

Can we transfer our child's CTF into a Junior ISA?

Yes, from April 2015 Child Trust Funds can be transferred to Junior ISAs.

How much can our child expect to have by the time they turn 18?

How much your child's nest egg will be worth will depend on:

  • Where you choose to place their money.
  • How much you put into the Junior ISA.
  • The rate of return you get. Remember that any funds placed in investments can fall as well as rise in value.

Can my child manage their own Junior ISA?

Until the child reaches 16, those who have parental responsibility for the child will need to manage the ISA. Once the child reaches 16, they can start to manage their own pot (although they can't make any withdrawals until they are 18).

At the age of 16 you can open an adult cash ISA; can my child have both?

Yes. Between the ages of 16 and 18 your child can have a Junior ISA and an adult cash ISA. Under the 2018/19 ISA limits, that means they can have £24,260 between a Junior ISA and an adult cash ISA.

At 18, the Junior ISA becomes an adult one, and your child will be able to save or invest up to the adult ISA limits only.

What next?

Compare children's savings accounts

Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.