Why open a Junior ISA?
It's easy to feel overwhelmed when looking for ways to save for your child's future. A Junior ISA could be a good idea if you’re looking to give your child a head start with long term savings or investments.
Tax-free saving and investment
Any money invested into a Junior ISA is tax-free and does not count towards your tax allowance. Usually, if a parent or guardian saves or invests money for their child, any interest above £100 on savings is considered part of the parent or guardian’s taxable income.
The income or investment returns on a Junior ISA — such as interest, an increase in share valuations or a growth on investments — do not count towards a child’s tax allowance. This means a Junior ISA is effectively a tax-free investment for children, parents, grandparents, aunts, uncles and anyone else who wants to contribute towards the child’s future.
How much could you help your child save?
Try our calculator to find out how regular contributions to a Junior ISA could build up a nest egg for your child.
Secure saving for the future
When you take out a Junior ISA it will be in your child's name, meaning they will be the only person who can access the money. Once opened they, and only they, will be able to withdraw money from the account after their 18th birthday. They can, however, take charge of the account once they are 16 if they wish to manage it.
As Junior ISA accounts cannot be accessed until the child turns 18, this means all funds are safe and secure from being spent unnecessarily. This makes a Junior ISA a great option for people wanting to build a nest egg for their children.
Spend or continue to save
Once your child turns 18 their Junior ISA will automatically become an ISA. They will then have the choice to either keep saving or spend the money how they wish. Since the money will still be within an ISA if they choose to continue saving, they can do so without losing the tax-free benefits of their Junior ISA.
By starting to save early with a Junior ISA, you can help your children along the path to a solid financial future. You could help them fund higher education, save for a deposit on a house, or even encourage them to continue saving for their future.
Think a Junior ISA sounds right for you and your child?
As a five time award-winning Junior ISA provider, we have plenty of experience in helping families invest in their children’s future. From eligibility to details on how our product works, we’re here to help you invest in a Junior ISA that’s right for your child.
Important information
If you are currently paying into a Child Trust Fund then you will need to transfer the funds as you cannot have both. However, you can take one cash and one stocks and shares Junior ISA.
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