JamesCaldwell

Junior ISAs

Compare the latest Junior ISA ideas

Here you'll find our selection of the latest junior ISAs available from leading providers. Choose from a wide range of funds, shares, bonds and cash options to help you make the most of your child's ISA allowance.

 

James Caldwell, Director

Junior ISAs

Junior ISAs are an initiative by the Government to help parents save for their children's future. Launched in November 2011, junior ISAs offer tax-free savings and investments. Each eligible child is allowed to have one cash ISA and one stocks and share ISA at any time. Transfers are permitted between cash and stocks and shares junior ISAs, or to another junior ISA provider. Children who were born between 1st September 2002 and 3rd January 2011 will already have a Child Trust Fund, and are therefore not eligible for a junior ISA.

Who is permitted to open a junior ISA?

ISAs can be opened by anyone who has parental responsibility for an eligible child. One ISA can be opened per child. Management of the ISA passes to the child when they turn 16. However, funds remain inaccessible until the child turns 18, after which they can either withdraw the funds, or have their account roll over into an adult ISA.

What are the rules surrounding junior ISAs?

In terms of rules and regulations, junior ISAs operate on a similar principle to regular adult ISAs. It's permissible to switch providers, but only one junior ISA can be held by each child at a time. Unlike Child Trust Funds, junior ISAs don't involve any Government contribution. The 2014/15 tax year allowance for junior ISAs is £4,000. 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.

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 stops your teenager 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?

  • If your child already has a Child Trust Fund, they aren't eligible for a junior ISA, and there's currently no facility to transfer money from Child Trust Funds into 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.

Use the tables below to compare a selection of junior ISAs.

 

Junior ISAs
ProviderJunior ISA ProviderRegular SavingsInvestment OptionsOnline ValuationsMore Info
Family Investments Junior ISAyesInvest in worldwide stocks and shares and fixed interest investments. Receive a free Boots Voucher when you set up a Direct Debit online (terms and conditions apply)yesMore Info >
Junior Stocks and Shares ISAyesChoose from over 2,500 unit trusts and OEICs from leading fund managers. Invest from £50 per month or lump sums of £500.yesMore Info >
Fidelity Junior ISAyesOver 1200 Funds from over 70 Investment CompaniesyesMore Info >
Shepherds Friendly Junior ISAyesA range of assets including UK and global shares, bonds and cashyesMore Info >
Sippdeal Junior ISAyesA range of investment opportunities, including all the FSTE 350 companies.yesMore Info >
Scottish Friendly My Select Junior ISAyesA range of assets including UK and global shares, bonds and cashyesMore Info >

 

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.

www.isa.co.uk is a trading name of Fair Investment Company Ltd which is authorised and regulated by the Financial Conduct Authority.