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Junior ISA Allowance

The Very Latest Junior ISA Rates
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)

Junior ISA Allowance

The Junior ISA limit for the 2017/18 tax year is £4,128. Junior ISAs were launched in 2011 and provide a tax-efficient way to save money for your children’s future.

If you already have a Child Trust Fund then you will be unable to open a Junior ISA. However, you can transfer the Trust Fund in to an ISA, just check with your provider for their transfer rules and process.

Transfers can be made between Junior Cash ISAs and Junior Stocks and Shares ISAs, and between ISA providers, but only one Junior Cash ISA and one Junior Stocks and Shares ISA can be held per child at a time.

You are able to split the allowance between a Junior Cash ISA, a Junior Stocks and Shares ISA or a combination of the two.

Junior Cash ISA - Junior cash ISAs work in a similar way to a normal savings account, except that you don’t pay UK Income Tax on the interest your money earns.

Junior Investment ISA - Junior investment ISAs can offer a potentially higher rate of return on the money as savings are invested in the stock market. And you also won’t pay UK Income Tax or Capital Gains Tax on any of the returns.

However, it’s important to consider that the value of investments and so, the amount in the Junior ISA could go down as well as up.

Rules of Junior ISAs

Junior ISAs are very similar to adult ISAs. The accounts are a tax-efficient wrapper that allow parents, grandparents, friends or guardians to invest up to the maximum allowance a year on a child's behalf, in either cash account or investment funds.

  • Savings and investments cannot be cashed in before the child reaches 18 when they will assume full control
  • There are both Junior Cash ISAs and Junior Stocks & Shares ISAs available
  • Like adult ISAs, you can divide the Junior ISA allowance between cash and investments in whatever proportion you wish
  • Children who already have a Child Trust Fund do not qualify for a junior ISA. However, you are able to transfer the trust fund to an ISA
  • A young person aged 16 can open their own Junior ISA. They can also open a regular cash ISA as well
  • An adult with parental responsibility may open a junior ISA on behalf of someone aged under 16 years old
  • Anyone can contribute towards the Junior ISA once it is opened, including grandparents, family members and friends
  • All money contributed into a junior ISA is considered a gift and cannot be subsequently returned to the giver if they change their mind
  • No withdrawals can be made from the account, until the child turns 18 at which point the account rolls over into a normal type of ISA, in their name, and they can do with it whatever they wish

What are the Advantages of Junior ISAs?

Junior ISAs provide parents, friends and family members with a convenient, tax-efficient way to save for a child's future

  • The money saved in a junior ISA stays tax-free once the child reaches the age of 18
  • The money is locked away until the child turns 18, which can stop children from being tempted into spending it on unimportant items
  • If you want to save an annual amount for your child that generates over £100 in yearly interest, a junior ISA ensures that this interest isn't taxed

What are the Disadvantages of Junior ISAs?

  • Once your child reaches 18, the money is theirs to spend or save as they wish. If you've got a specific savings goal in mind for your child - for example, a mortgage deposit - you might be better off setting up a savings account in your own name so that you can ensure the money is used for the purpose you originally intended

  • The ISA isn’t always the best option in terms of savings due to dwindling interest rates. Children are also entitled to the Personal Savings Allowance so check if the ISA is the best option for you. Savings Accounts or even Current Accounts could offer better options and higher interest rates

What should I look for?

There are some important things to search for when trying to find the best ISA option for you. Check our tables for latest interest rates and information.

1)Find the Highest Interest Rate – While this seems like an obvious point, many people allow their savings to languish in accounts which aren’t paying a great deal of interest. This is particularly true of accounts that once had attractive opening incentives but are now not working as hard as they should be. When you’re opening an account make sure you shop around to get the best deal possible. Use our comparison tables for latest interest rates and options.

2)Variable or Fixed Rate – Most Junior ISAs are available at variable rates of interest. Normal savings accounts tend to offer a fixed rate account if you tie up your money. The advantage of this is that fixed rate accounts tend to offer a higher rate of interest in exchange for tying up your money. You would then lose the tax-free wrapper, however. Some accounts which offer a fixed rate Junior ISA include: Halifax, Santander, TSB, Nationwide. See our charts for more details.

3)Cash ISA or Investment ISA – This mostly depends on whether you’re willing to take a risk with your money. Investing is always carries some form of risk but the returns are generally much higher. Many Investment ISAs now manage the funds for you and invest to a level of risk you’re comfortable with, so it’s definitely a viable option for your money. A Cash ISA means you will not lose any money and will see some gains but will likely be at a much lower rate. You can also split your money between one of each of these type of ISA.

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

ISAs Products

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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20th June 2017

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