skip to main content
Homepage /

Junior ISA Allowance

The Very Latest Junior ISA Rates
Peer to Peer Lending ISAs

Downing Crowd IFISA

from Downing LLP

ISA Option
Allows ISA Transfers
Interest Rate 5.68% target return
  • Term: typically 1 – 5 years
  • Invest From: £100

Why we like it:

Downing is a long-established, FCA-authorised investment manager that brings over 25 years’ investment experience to debt-based crowdfunding. We launched the Downing Crowd platform in March 2016 and since then have raised over £40 million to support the growth of smaller UK companies, and repaid investors some £16 million of capital and £1 million interest (as at December 2017). To help manage risk, our Crowd Bonds are secured against existing assets, which means that if a borrower defaults on the bond, Downing, as security trustee, has the right to take control and use the net proceeds to repay some or all of the investors’ capital and interest.

Our monitoring fee is contingent on investors receiving their capital and interest being repaid in full.

Downing Crowd was recently awarded Best Investment Platform at the 2017 Growth Investor Awards, November 2017.

UK investors in Crowd Bonds can also now earn tax-free interest with our Innovative Finance ISA (IFISA). Capital at risk.

  • Tax-free interest on your investments through the IFISA
  • A range of fixed-term bonds to choose from
  • Downing’s fee is contingent on investors getting their capital and interest back in full
  • Capital at risk and returns not guaranteed
  • No FSCS deposit protection
  • Must be UK resident and over 18 years

Calculate your interest with this plan

Your savings:
£
You could gain:
£0.00 (per tax year)
Investment Income Plan ISAs

FTSE 100 Defensive Income Plan

from Investec

Allow ISA Transfers
Annual Income up to 7.30%
  • Counterparty: Investec Bank
  • Term: Maximum 8 years

If you’re looking for high income, then the ability to receive 7.30% per year even if the FTSE falls almost 20%, could be appealing.

  • Up to 7.30% 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 5.65% 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 6.00%
  • 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 6% per year even if the FTSE falls by up to 25%, is certainly worth a closer look.

  • Potential monthly income: 0.5% (equivalent to 6% annually)
  • Income paid even if FTSE 100 falls by 25%
  • 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 9.25% 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 9.25% annual growth.

  • 9.25% 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
  • Alternative collateralised option also available offering potential 7.60% pa
  • 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.

Fixed Rate Cash ISAs

2 Year Fixed Rate Cash ISA

from Ford Money

Interest Rate (AER) 1.45%
  • 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) 1.25%
  • 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

Flexible 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)

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.

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

How inflation is impacting your savings and why you cannot afford to sit on your hands when it comes to your cash

11th December 2017

Last month, the Bank of England raised their base rate for the first time in more than ten years, and by doing so opened the door to increased monthly costs for many homeowners. What’s more, at the time of writing inflation continues to sit at a five year high of 3%, which means that the cost of living has more than trebled in the last 12 months.

Newsletter Signup

Sign up to our Newsletter to get exclusive news and offers direct to your inbox.

About us

ISA.co.uk is a trading style of Fair Investment Company.

We've been comparing and recommending ISAs for many years so you can trust you're in good hands.

About us

4.89 Average

35 Reviews

Paul

Very informative, find myself a good ISA account with best return in terms of interest.