Junior ISAs

If your child was born after 3 January 2011, or is under 18 and was born before 1 September 2002, they are eligible to have a Junior Individual Savings Account (JISA).  If your child already has a Child Trust Fund account then if you wish you can transfer it to a JISA to achieve a better rate of return. Ask your adviser about how to do this.

As a parent or parental guardian you can open the JISA account and manage it on behalf of your child.  The money will belong to your child and they will be able to withdraw it when they are 18. At the age of 16, your child can choose to manage their own account, although they will still only be able to access the money when they are 18. At the age of 18, your child’s JISA will change into a regular ISA.

As with conventional ISAs, you have the choice between having a cash JISA, a stocks and shares JISA or both. The tax-free annual allowance you can deposit into the JISA overall (across both types of account) in 2016/17 is £4,080. There is no tax to pay on any interest, growth or dividends from a JISA.