Junior ISA Limit
The Junior ISA limit for the 2019/20 tax year is £4,368.
What is a Junior ISA?
Junior ISAs are a savings initiative launched by the government in November 2011 in order to replace the Child Trust Funds. Each child is entitled to the annual allowance which provides parents, relatives and family friends an easy way to save for a child’s future.
Transfers can be made between Junior Cash ISAs and Junior Stocks and Shares ISAs as well as between providers. You can also convert your Child Trust Fund in to an ISA but you will not be able to open a Junior ISA without transferring the Trust Fund first. A child may only hold one Junior Cash ISA and One Junior Stocks and Shares ISA at the same time.
Why Should I use my Child's Junior ISA Allowance?
There are advantages and disadvantages to ISAs but it’s good to be aware of all your options. 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.
Cash ISAs are becoming less popular due to the dwindling interest rates and many savings accounts now offer a higher rate. Children are also entitled to the Personal Savings Allowance so if you’re planning on saving an amount under the limit, a savings account could offer you a better deal.
Who is allowed to Put Money into a Junior ISA? Are there any Restrictions?
Anybody can place money in to the account. 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 nobody will be able to withdraw any money from the account until the child reaches the age of 18 when full responsibility transfers to the child.
Are there any regulations that make a Junior ISA different from an Adult ISA?
On the whole, Junior ISAs are very similar to regular adult ISAs in terms of rules and regulations
Features:
- Savings and investments cannot be cashed in before the child reaches 18 when they will assume full control
- 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
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.
Stocks & Shares ISAs
Types of Stocks and Shares ISA include:
Stocks and Shares ISAs
Latest News
Best Stocks & Shares ISA Funds For Income - 5 Top Picks In 2020
22nd June 2020
With UK interest rates at a record low, if you are seeking income we have selected our 5 top picks that provide monthly, quarterly or bi-annual income payments to investors within an ISA.
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 usI found the way the different options are presented very clear - much more useful than some other comparison sites. I sent it to my daughter as well.
Very informative, find myself a good ISA account with best return in terms of interest.
Easy to use website and up to date. Saved the link on my tablet.
The website was very useful and informative.
ISA can be confusing at first and this site includes a useful and helpful introduction into the world of ISAs
Excellent website - clear and helpful information about different products - and a trustworthy partner.
Easy to use website and up to date. Saved the link on my tablet.
Really simple to use and all the information was clear with lots of products available. The interest calculator was really handy too. Have bookmarked and will definitely use again.
This was a really user-friendly site, and was very helpful when it came to comparing accounts and choosing my 2016 ISA.
Easy to use website and up to date. Saved the link on my tablet.
If you wish to invest in an ISA this site has it all. A super comprehensive range of simply explained products from all the major companies.
Very knowledgeble company with an extensive range of services, a great website with loads of useful information.
Nice graphics and easy to navigate
Good advice and professional approach
Very helpful for getting my annual ISA
Clear, concise and very professional outfit with an excellent choice of market leading deals.
ISA.co.uk not only helped narrow down my choices for a Junior ISA but also provided additional practical information that helped demystify the whole process.
Just the site I needed, I have been looking for a suitable ISA for a while, but as there are so many to choose from, find it difficult to find the right one for me.
I found the information on ISA.co.uk very helpful and easy to understand. The site is easy to navigate and find what you're looking for.
I found ISA.co.uk very insightful and easy to navigate through. The content was useful and helped me make my ISA decision.
I thought the information provided was easy to understand and very informative, I would recommend to friends for deffinite.
Great selection of Isa products, useful information and a very user friendly site