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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.
Selected ISAs

Stocks & Shares ISA

from Prudential

Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Four unique PruFunds
  • Invest From: £50 p.m. or £500 lump sum
  • Investment Options: Lump sums, regular savings and ISA transfers

Why we like it: Choose from 4 unique PruFund Funds, each one with a different level of risk and managed by Prudential’s in-house experts, and you can keep track of your investments 24/7 using their online valuation service. Open with as little as £50 per month or a one off lump sum of £500. The application process takes around 10 minutes and they also have a simple transfer process if you already have ISAs that you wish to move across. Other benefits include one simple annual management charge and no exit fee.

Investment Income Plan ISAs

FTSE 100 Enhanced Income Plan

from Investec

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

Why we like it: Fixed income, fixed term, monthly payments and your capital back unless the FTSE falls by more than 50%. 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.

Peer to Peer Lending ISAs

CROWD2FUND ISA

from CROWD2FUND

Allows ISA Transfers
Interest Rate Earn an estimated 8.70% APR
  • Term: 1-5 years
  • Protection Scheme: Own Scheme
  • Invest From: £10
  • Currently 0% platform default rate
  • Access to your capital
  • Balance your level of risk
  • Capital at risk
Easy Access Cash ISAs

30 Day Notice Cash ISAs

from Aldermore

Interest Rate (AER) 0.80%
  • Term: Easy Access

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

  • Early withdrawals are permitted subject to loss of interest equivalent to the notice period
  • Open account with £1000

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)
Fixed Rate Cash ISAs

3 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.25%
  • Term: 3 Years

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

  • 1.85% gross/AER fixed for 3 years.
  • £1,000 minimum opening balance

Calculate your interest with this plan

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

3 Year Fixed Rate Cash ISA

from Bank of Cyprus

Interest Rate (AER) 1.42%
  • Term: 3 Years


  • Minimum deposit £500
  • Available to individual applicants aged 16 or over
  • Access to funds before the end of the term is subject to a fee equivalent to six months’ interest

Calculate your interest with this plan

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

2 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.20%
  • Term: 2 Year

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

2 Year Fixed Rate Cash ISA

from Bank of Cyprus

Interest Rate (AER) 1.32%
  • Term: 2 Years


  • Minimum deposit £500
  • Available to individual applicants aged 16 or over
  • Access to funds before the end of the term is subject to a fee equivalent to six months’ interest

Calculate your interest with this plan

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

1 Year Fixed Rate Cash ISA

from Aldermore

Interest Rate (AER) 1.00%
  • Term: 1 Year

'Winner' – ISA Provider of the Year for the 5th year running Consumer Moneyfacts Awards 2011-15

1 Year Fixed Rate Cash ISA

from Bank of Cyprus

Interest Rate (AER) 1.22%
  • Term: 1 Year


  • Minimum deposit £500
  • Available to individual applicants aged 16 or over
  • Access to funds before the end of the term is subject to a fee equivalent to six months’ interest

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.

Cash ISAs

ISAs are a tax-advantageous way to save or invest, check out some of the ISA options below

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Fund ISAs

There are a range of types of fund ISA

Fund ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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