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Junior Cash ISAs

Tax-Efficient Savings for Children
Junior cash ISAs are a great way to build up tax-free savings for your child or grandchild.
Investment Income Plan ISAs

FTSE 100 Defensive Income Plan

from Investec

Allow ISA Transfers
Annual Income up to 7.60%
  • Counterparty: Investec Bank
  • Term: Maximum 8 years

If you’re looking for high income, then the ability to receive 7.6% per year even if the FTSE falls almost 20%, could be appealing.

  • Up to 7.6% per year based on the performance of the FTSE 100 Index
  • Income paid even if Index falls by 20%
  • Quarterly payments
  • Alternative option also available paying up to 5.75% pa if the FTSE doesn't drop by 40% or more
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies for this plan
  • Product designed to be held for the full term

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

FTSE Monthly Contingent Income Plan

from Meteor

Allow ISA Transfers
Annual Income Up to 7.50%
  • Counterparty: Natixis
  • Term: Up to 10 Years

With the current record low interest rate environment, income is high up on the agenda for many investors and so the ability to receive 7.5% per year even if the FTSE falls by up to 15%, is certainly worth a closer look.

  • Potential monthly income: 0.625% (equivalent to 7.5% annually)
  • Income paid even if FTSE 100 falls by 15%
  • Potential to kick out quarterly from eighteen months onwards
  • Available for ISA, ISA transfers and direct investments
  • Capital is at risk if the FTSE 100 Index falls by more than 40% during the term and finishes lower than its starting value, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £5000
  • An arrangement fee applies to this plan
  • Product designed to be held for the full term

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

FTSE 100 Enhanced Income Plan

from Investec

Allow ISA Transfers
Annual Income 4.35% fixed income
  • Counterparty: Investec Bank plc
  • Term: 5 years

Fixed income, fixed term, monthly payments and your capital back unless the FTSE falls by more than 40%. By offering a high fixed income rather than a variable income based on the performance of the stock market, this plans offers something different to income seekers.

  • 4.35% income paid regardless of the performance of the FTSE 100
  • Monthly income
  • Available for ISA, ISA transfer and direct investment
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • An arrangement fee applies for this plan
  • Product designed to be held for the full term

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Investment Growth Plan ISAs

FTSE 100 Enhanced Kick Out Plan

from Investec

Allow ISA Transfers
Maximum Potential Return 9.65% per annum
  • Counterparty: Investec Bank plc
  • Term: Up to 6 years

Kick out plans seem to attract particular interest when the market is at historically high levels since they can provide competitive returns even if the FTSE stays relatively flat with the potential for 9.65% annual growth.

  • 9.65% for each year (not compounded) provided the FTSE 100 finishes higher than its starting value (subject to averaging)
  • Potential to mature early, from year 1 onwards
  • Available for ISA, ISA transfer and direct investment
  • Capital is at risk if the FTSE 100 Index has fallen by more than 40% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £3,000
  • Product designed to be held for the full term

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Share Dealing ISAs

Youinvest ISA

from AJ Bell

  • Trade From (frequent trader rate): £4.95
  • Trade From (standard trader rate): £9.95

Voted ‘Best ISA Provider 2017’ in the City of London Wealth Management Awards. Place 10 deals or more per month and pay only £4.95 per online deal in the next month. Deal from £1.50 and never pay more than £9.95 per online trade.

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Charles Stanley

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 1,500+ funds
  • Invest From: £50 per month or £500 single

Invest through an award winning FTSE company, with extensive research and analysis and competitive charges. Choose from a range of investments including shares, funds, gilts, bonds, investment trusts and ETFs.

Deposit Cash ISAs

FTSE 100 4 Year Deposit Plan

from Investec

ISA Option
Maximum Potential Return 15.00% at end of term
  • Deposit Taker: Investec Bank plc
  • Term: 4 years
  • 15% fixed return if the Index is higher
  • Capital protected product*
  • Eligible for the Financial Services Compensation Scheme (FSCS)
  • Available for ISA, ISA transfer and direct investment
  • Returns not guaranteed. You may only receive a return of your original capital
  • Minimum deposit £3,000
  • Plan designed to be held for full term

Important Information: * The return of your initial deposit depends on the ability of the deposit taker (Investec Bank plc) to repay your money. Structured deposits offer you the potential to earn higher returns than you would with a regular savings account. Your returns are based on the performance of an index or commodity. If the investment does not perform well you may receive no income or capital growth, but you can be confident that your capital will be repaid. You have no access to your deposit during the term of the account, typically 3 to 6 years but your original capital will be repaid in full at the end of the term. In the event that the deposit taker is unable to repay your initial investment and any returns stated you may be entitled to compensation from the Financial Services Compensation Scheme (FSCS) depending on your individual circumstances.

Fixed Rate Cash ISAs

2 Year Fixed Rate Cash ISA

from Ford Money

Interest Rate (AER) 1.33%
  • Term: 2 Years
  • Minimum deposit £500
  • Interest can be paid monthly or annually.
  • Transfers in allowed
  • FSCS Protected
  • Must be 16 or over to apply
  • Early withdrawals subject to term breakage charge

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

1 Year Fixed Rate Cash ISA

from Ford Money

Interest Rate (AER) 1.20%
  • Term: 1 Year
  • Minimum deposit £500
  • Interest can be paid monthly or annually
  • Transfers in allowed
  • FSCS Protected
  • Must be 16 or over to apply
  • Early withdrawals subject to term breakage charge

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)
Easy Access Cash ISAs

Easy Access ISA

from AA

Interest Rate (AER) 0.95%
  • Term: Easy Access

Earn 0.96% tax free/AER variable - includes a 12 month bonus rate of 0.76%. Open with £100. Unlimited free withdrawals. Transfer in ISAs held elsewhere - no limit

Felxible Cash ISA

from Ford Money

Interest Rate (AER) 1.00%
  • Minimum deposit £1
  • Interest can be paid monthly or annually
  • Unlimited deposits and withdrawals permitted
  • Transfers in allowed
  • FSCS Protected
  • Must be 16 or over to apply

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)

What is a Junior Cash ISA?

Junior Cash ISAs offer each eligible child a tax-free savings account. They are a way for 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. However, it is possible to transfer a Child Trust Fund to be transferred in to an ISA.

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 Junior ISA 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.

The Advantages of a Junior Cash ISA

There are several advantages to choosing a Junior Cash ISA for your child. We’ve listed some below:

1.It's an easy and convenient way to save tax-free for your child's future - Unlike many savings accounts, the money saved in a junior cash ISA stays tax-free once the child reaches adulthood. If the child decides to keep the cash in the account once they reach 18, it will automatically be converted to a regular ISA.

2.Any adult can pay money into the account - family friends, grandparents, godparents, aunts and uncles can all contribute - making a junior cash ISA an ideal way to save up money given on birthdays and other special occasions without the child being tempted to spend it.

3.The money is locked away until the child turns 18 and cannot be released by either parents or children until this point - a bit like a pension fund. This can be advantageous as it means the child can't blow all their savings on clothes or holidays once they hit the teenage years - and parents won't be tempted to dip in either.

4.If you are in a financial position to make savings on behalf of your child that generate more than £100 per year in interest, this interest will be liable to taxation. If this scenario applies, a Junior ISA may be a good way to make sure your child gets the most from their tax-free savings allowance each year.

The Disadvantages of a Junior Cash ISA

There aren’t many downsides to saving in a Junior ISA but the main two are listed below:

1.Your child does assume full control of the account once they’re 18. This could become an issue if you had a specific idea for what the money would be used for. Such as a deposit or for university. There won’t be anything you can do about this so it may be worth opening a standard account in your name if you anticipate this being a problem.

2.Junior ISAs don’t necessarily have the best rates available. Many standard savings accounts offer a higher rate of interest despite not coming in a tax-free wrapper. Consider which benefit may be more beneficial or instead look for an ISA with the highest interest rate.

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.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Income ISA offers up to 7.60% pa paid quarterly

9th October 2017

Inflation reached as high as 2.9% in August as reported by the Office for National Statistics (ONS). As a result, many individuals are looking for ways to receive more income to combat the effect of rising inflation. 

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