Fidelity Junior ISA
Whether you’re looking to put aside a lump sum to enable your child to get on the property ladder, or save monthly to fund the increasingly expensive cost of a university education, a junior ISA can make saving for the big things simple.
You can split your child’s annual allowance between a Junior Cash ISA and a Junior Stocks and Shares ISA or in to one of these types of accounts. You can’t have more than one account of the same type.
Fidelity offer a Junior Stocks and Shares ISA. While there are opportunities for much higher returns than with a Stocks and Shares ISA, the value of investments can go down as well as up so your child may not get back the amount you invest.
A distinct advantage of the Fidelity junior ISA is that it allows you to hold your investments in cash. This means if you're concerned about the market's prospects you can shelter your money in cash, then move it quickly and easily to investments when you believe the markets have more potential
Fidelity Junior Isa Features
Outlined below are some of the features of the Fidelity Junior ISA:
- You can view and manage the account online, 24 hours a day their online Account Management service
- Once set up, anyone can contribute to a child’s account at any time, up to the annual limit
- You can start with an initial deposit of £500 or follow a £50 monthly savings plan
- The money is invested and locked away until the child is 18. When the child is 18 it becomes their ISA and they assume full control
- A full catalogue of investments to choose from is offered
- You can invest up to £4,128 - this is the Junior ISA allowance for the 2017/18 tax year
The Junior ISA has to be opened on behalf of the child by a parent or guardian. Once set up, anyone can contribute to a child’s account at any time, up to the annual limit.
Useful to Know
Some useful things to know when taking out a Fidelity Junior ISA.
- Junior ISAs are long term tax-efficient savings account for children. A Junior ISA is only available to children under the age of 18 who are resident in the UK
- It is not possible to hold both a Junior ISA and a Child Trust Fund (CTF). If your child was born between 1 September 2002 and 2 January 2011 the Government would have automatically opened a CTF on your child's behalf
- If your child holds a CTF they can transfer the investment into a Junior ISA. However, Fidelity does not allow for CTF transfers into a Junior ISA
- Parents or guardians can open the Junior ISA and manage the account but the money belongs to the child and the investment is locked away until the child reaches 18 years old
- Any contribution to a Junior ISA is deemed as a gift to the child and it cannot be returned to the contributor at a later date if the contributor subsequently changes their mind