Frequently Asked Questions (FAQ’s)
What is a Junior ISA?
A Junior ISA or Junior Individual Savings Account is a simple savings account for your child and unlike regular savings accounts; you are allowed to keep any interest earned without having to pay income tax on it. The Tax Free Junior ISA was brought in to replace the Child Trust Fund in 2011.
Who are The Childrens ISA?
We are an independent company who believe in offering the best possible products to help you save towards your child’s future. We have linked up with some of the largest names in the industry such as Prudential, Aberdeen Asset Management and Eden Tree Investment Management to offer you excellent investment choices through a simple and flexible Junior ISA framework.
Is my child eligible for a Junior ISA?
Any child who is resident within the UK and who isn’t eligible for a child trust fund can hold a Junior ISA Account. If your child was born on or after the 3rd January 2011 then they are eligible for a Junior ISA. If your child was born before September 2002 and are still under 18 years of age then they are eligible for a Junior ISA.
What are the different types of Junior ISA?
There are two different types of Junior ISA: The Junior Cash ISA and the Investment Junior ISA. The Cash Junior ISA works pretty much like a normal savings account and the Investment Junior ISA will hold investments such as stocks and shares for example. Here at Children’s ISA we offer a wide range of investment approaches to cater for all different types of saver. Whether you are looking for a high or low risk, actively managed or low cost children’s individual savings account (ISA).
We also offer an ethical investment and Shariah compliant investment option ISA (which invests in line with the Islamic Investment Guidelines). Not all of us are fully knowledgeable in the world of finance and many of us do not know the difference between the hundreds of different investment funds you can place your Children’s ISA with. Because of this, we have tried to make our products as simple as possible to make the whole process of choosing your Children’s ISA easy and understandable.
For more information on each option please see our Key Features Document, which you can download here >>
When can I open a Junior ISA Account?
Now. The Junior ISA was officially launched on the 1st November 2011 and here at The Children’s ISA we were open to new business from that date on.
How many Junior ISA’s can a child have?
You are permitted to have only one of each Junior ISA savings plans per child (one Cash Junior ISA & one Investment Junior ISA). Please note that if your child holds one of each Junior ISA Account they do not have to be with the same provider.
Can Grandparents pay into a Junior ISA?
Yes, Grandparents can contribute towards a Junior Isa for their grandchild / grandchildren. In fact, anyone who has an interest in the child’s financial future can pay into their Junior ISA Account as long as the annual contribution allowance is not exceeded.
What are the tax benefits of a Junior ISA?
The tax benefits of opening a Children’s ISA can be summarised as follows:
No tax payable on any of the income the child receives from their savings and investments.
No tax payable on capital gains.
No tax is payable by any subscriber on the income generated by money paid into a Children’s ISA even where that income exceeds the £100 limit which applies to gifts from parents.
When can the money held in a Junior ISA be accessed?
The funds held within a Junior ISA can be accessed by the child at age 18. If you would prefer to keep control of the funds yourself you can open an Adult ISA with us utilising the same great investment choices.
Click here to download our Guide to Grown Up ISA’s.
What happens if we move abroad?
You can only open a Junior ISA savings account if you are a UK resident for tax purposes. If you are employed by the crown (for example you are a diplomat or soldier work abroad) then you can open a Junior ISA.
If you move abroad after already opening an account then you are not allowed to make payments into the account. You can still keep the Tax Free Junior ISA in place and it will continue to earn tax free interest and when you return to the UK you are then able to continue paying money into it. If you are in any doubt then please contact your local tax office to confirm your status and eligibility.
What happens if I change my mind after opening a Junior ISA Savings Account?
Some Junior ISA’s will offer what is known as a ‘cooling off period’ which allows you to cancel within a certain time limit (14 days for example). If you cancel within this time then payments you have made will not count towards an Junior ISA subscription for that tax year and you are free to pay money into an alternative ISA for the same tax year.
If you decide to cancel after your cooling off period then any payments will count as an ISA subscription and you are then not permitted to pay into another Junior ISA of the same type for that current tax year. However, you are able to transfer your Junior ISA to another Junior ISA Manager.
At the Children’s ISA full details of this can be found in the Terms and Conditions which you can – Download Here ››
What if we have a child trust fund?
The Junior ISA was created to replace the Child Trust Fund and if your child currently has a trust fund in place then you will not be able to open a Junior ISA in their name as well. Whilst Child Trust Funds have now stopped, if you have one you can still keep it going and pay money into it. The annual deposit limit of the Child Trust Fund has also been increased £4,128 per year in line with the new Junior ISA Account. The Children’s ISA does not currently offer a Child Trust Fund, however you can now transfer your Child Trust Fund to a Junior ISA by completing the Children’s ISA application form and Child Trust Fund Transfer form. Download Here>>
How is The Children’s ISA Account operated?
The Children’s ISA is operated by our plan manager Embark Investment Services Limited. Embark operate the account as an online platform through which you can receive statements, get online valuations and administer your account. You will set your login details when you apply for our Junior ISA. Please make a note of these details and then login to your account via our Login page whenever you would like to view your account.
Can I choose multiple investment funds?
Yes, you can choose to invest in multiple funds as long as the minimum contribution of £10 per fund is met.
What are the charges applied to the account?
We have several options from Low Cost to specialist funds which attract different costs. Our costs are detailed in our Terms and Conditions which you can view here. Download Here ›
How can I apply for The Children’s ISA?
You can apply online, by telephone or by post. Please visit our Apply page for details of how to apply.
How can I contact The Children’s ISA?
Our full contact details can be found by clicking here.