Junior cash ISAs are a great way to build up tax-free savings for your child or grandchild.
James Caldwell, Director
Junior cash ISAs offer each eligible child a tax-free savings account into which parents, family or friends can contribute funds to help save for the child's future. Junior ISAs first become available in November 2011 to replace the now-defunct Child Trust Fund, which means children who were born during the period in which Child Trust Funds were in operation are not eligible for junior ISAs. A junior cash ISA can be opened by the child's parent or legal guardian. Once the child reaches 16, they'll be able to manage their own account. However, they won't be able to withdraw funds until they reach the age of 18.
In terms of rules and regulations, junior cash ISAs operate on a similar principle to regular cash ISAs. It's permissible to switch providers, but only one junior cash ISA can be held by each child at a time. Unlike Child Trust Funds, junior ISAs don't involve any Government contribution. The 2013/14 tax year allowance for junior ISAs is £3,720. This allowance can either be put into a junior cash ISA or divided between a junior stocks and shares ISA and a junior cash ISA in whatever proportion you wish.
Important Risk Information:
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.