The junior ISA limit for 2013-2014 is £3,720 from 6th April 2013. A junior ISA offers a convenient, tax-efficient way to save for your child's future.
James Caldwell, Director
Junior ISAs were introduced in November 2011 with the intention of replacing the now-defunct Child Trust Funds. Each eligible child receives an annual allowance, which gives parents, relatives and family friends a tax-free way of saving and investing for the child's future. 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.
Recent research suggests that the vast majority of parents with children under 18 believe it's important to save on behalf of their child, but over half of those questioned said they hadn't heard of junior ISAs. Launched in November 2011, junior ISAs offer each eligible child an annual allowance - just like an adult ISA allowance - which can be put into a cash ISA and a stocks and shares ISA, in whatever proportion the adult opening the account chooses.
The current junior ISA limit is £3,720, which means that parents, family members, or friends can shelter up to £3,720 per tax year for a child, by putting it into either cash or stocks and shares, or both. This limit will apply until 5th April 2014 and will then be updated annually in line with the Consumer Price Index (CPI).
Anybody - family members, friends, or organizations - can contribute to a junior ISA on behalf of a child, but it must be set up by someone who has parental responsibility for the child. Once the child reaches 16, they can manage the ISA themselves, but they won't be able to withdraw any money from the account until they reach the age of 18.
On the whole, junior ISAs are quite similar to regular adult ISAs in terms of rules and regulations. It's important to note that the junior ISA limit can be divided between a cash ISA or a stocks and shares ISA in whichever proportion you wish - this is one of the key differences between an adult Isa and a junior ISA. You can also switch a junior ISA from a cash ISA to a stocks and shares ISA, and vice versa, something which is not permitted under the current rules for adult ISAs.
*Source: Family Investments
See the tables below for more information on junior ISAs.
|Provider||Junior ISA Provider||Regular Savings||Investment Options||Online Valuations||More Info|
|JP Morgan Junior ISA||Over 850 Funds to choose from with no initial transaction charge or annual account charge. Invest up to £3,600 per year, per child. Invest from £50 per month or lump sums of £500.||More Info >|
|Fidelity Junior ISA||Over 1200 Funds from over 70 Investment Companies||More Info >|
|Family Investments Junior ISA||Invest in worldwide stocks and shares and fixed interest investments. Receive a £20 Boots Voucher when you set up a Direct Debit online (terms and conditions apply)||More Info >|
|Shepherds Friendly Junior ISA||A range of assets including UK and global shares, bonds and cash||More Info >|
|Sippdeal Junior ISA||A range of investment opportunities, including all the FSTE 350 companies.||More Info >|
|Scottish Friendly Junior ISA||A range of assets including UK and global shares, bonds and cash||More 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.