Frequently asked questions
Below are a selection of commonly questions about our Junior ISA. If you have any further questions please feel free to contact us and we’d be happy to help.
Who can open a Junior ISA?
A child’s parent or legal guardian must open the Junior ISA account on their behalf. You can open a Junior ISA for any UK child, as long as they are under eighteen. If your child holds a Child Trust Fund, this can easily be swapped over to a Junior ISA account.
Can anyone contribute to a Junior ISA?
Once the account is opened by a parent or guardian, anyone can make a subscription and contribute up to the yearly tax limit. This counts for parents, friends and relatives. Grandparents are often the main investors into child ISAs and once they have the details they can easily and quickly pay into the account online.
Can I access the money paid into a Junior ISA?
Only the child named on the Junior ISA account can access the funds, and this can only be withdrawn after their eighteenth birthday. You may, however, gain access in exceptional and unfortunate circumstances, such as if you put forward a terminal illness or death.
How do I set up a Junior ISA?
With the Children’s ISA you can open an account online, from the comfort of your own home. Simply choose which account you would like from our options and fill out our application form. Handy tip: you will need both your and your child’s National Insurance number, plus home address and your bank details to hand.
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 Children’s 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, Verbatim Asset Management, 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 under the age of 18 can hold a Junior ISA Account. If your child was born between September 2002 and the 2nd January 2011 they will have a Child Trust Fund. If you Child holds a Child Trust Fund they will need to transfer this into a Junior ISA to become eligible.
To find out more about transferring your Child Trust Fund, visit our transfer now page>>
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 fixed interest or 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
What is the Junior ISA allowance?
The Junior ISA allowance for this tax year 2020/2021 is £9,000. That means that you can put contributions into your Junior ISA up to that amount or if you have a Junior Cash ISA and a Junior Investment ISA then you can not exceed that amount for the tax year across both accounts.
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.
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 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.
What if we have a Child Trust Fund (CTF)?
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.
A Child Trust Fund (CTF) is a long-term tax efficient savings account for children. The UK government introduced the Child Trust Fund scheme with the aim of ensuring every child has savings at the age of 18. All eligible children born between September 2002 and 2nd January 2011 received an initial subscription from the government in the form of a voucher for at least £250 to save in a CTF.
The annual deposit limit of the Child Trust Fund has also been increased £9,000 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>>
Once we have received your completed form it will take roughly 2 weeks for us to contact the CTF provider and request the money be transferred into the Junior ISA account.
To find out where your child’s Child Trust Fund is held, visit the HMRC website.
How do I transfer an existing Junior ISA to The Children’s ISA?
It’s easy to transfer into one of our Junior ISAs. You can transfer your existing Junior ISA to The Children’s ISA by completing the application form and transfer request form. Which you can download here >>
How can I contact The Children’s ISA?
For our full contact details please visit contact us
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 only be accessed by the child from age 18.
The will need to fill in a maturities options form which will be emailed to you 3 months before the child’s 18th birthday.
They can then access the account online via our website.
You will have the following options:
- Keep the account open as an ISA
- Withdraw the funds and close the account
- Withdraw some of the funds, keep the account open as an ISA (subject to a minimum £100 balance)
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 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
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
How often will I hear from The Children’s ISA?
As an environmentally responsible company we don’t send an documentation or updates to you in the post; all communications are sent electronically. You will receive a 6 monthly statement communication and the statement will be added to your document store in your online account for you to login and view. We may also contact you periodically with updates and reminders, to ensure that you receive all of these communications please make sure that you add info@thechildrensisa.com to your email contacts and safe list.
How is The Children’s ISA Account operated?
Once your account is set up simply login via our website, get valuations, pay in to 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.
