Junior ISAs

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Junior ISAs:
Frequent Questions

Our most commonly asked Junior ISA questions

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Frequently Asked Questions - and answers of course...

Here at Junior ISAs .org we are asked many questions every day regarding Junior ISAs so we have decided to put our most commonly asked questions up on our website for you to read. And hopefully this will answer many queries.
 

Can my child have a Junior ISA?
Provided that your Child is under 18, resident within the UK and does not already have a Junior ISA or a Child Trust Fund then yes, your child is eligible for the new Junior ISA.

What are the best type of Junior ISAs. A cash or Stocks and Shares?
This all depends on what type of invester you are. Junior Cash ISAs are pretty much like regular children’s savings accounts which pays a fixed annual percentage rate (albeit this tends to be quite a low rate) where as Junior Stocks and Shares ISAs invest in funds, stocks & shares, investments etc instead of money.
Stocks and shares junior isas can potentially provide a bigger return over the medium to long term but carry a higher risk, where as Cash Junior ISAs are vulnerable to the eroding effects of inflation.

 

IMPORTANT: It is worth noting that each eligible child can hold both a Stocks & Shares as well as a Junior Cash ISA account at the same time and with different providers. Only one of each account is permitted and you can invest a total of £4000 per tax year between the accounts (not £3840 for each account). This way, if you can’t decide which type of Junior ISA to invest in you can open one of each account for the child and compare their performance against each other over a period of time.

Can grandparents open a Junior ISA?
Provided that they are the legal guardian(s) of the child then yes they can. The governments Junior ISA regulations state that only the parents or legal guardians may open a Junior ISA on behalf of a child.

Can anyone pay into a Junior ISA?
Yes indeed. Once an account has been opened then anyone can contribute towards it including friends, relatives and grandparents. You can contribute a lump sum at Birthdays, Christmas etc or you can set up a regular monthly contribution.

What if we move abroad after opening an account?
If your child already has a Junior ISA and they move abroad then the account will remain open and you can still contribute towards the account.

My Child already has a Child Trust Fund, can they also have a Junior ISA?
We’re afraid that any child who holds a Child Trust Fund is not eligible for a Junior ISA.

Can Child Trust Funds be transferred to Junior ISAs?
At the moment the government has announced that they have no plans to allow to transfer a child trust fund to a children’s isa, however we feel that Junior ISAs are a much better product and offer parents a wider range of investment opportunities. In the near future we are hoping that the government will announce that you can transfer your child trust fund into a junior isa or even a merger of the two products.

How much can I invest tax free in a Junior ISA?
Current regulations permits an annual Junior ISA allowance of £4000. If a child holds both cash & stocks and shares Junior ISAs then the combined annual allowance for both accounts is £4000.
 

 

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