What is a Junior ISA?

Junior ISA rules, limits and benefits explained

Junior ISAs are tax-free savings and investment accounts for children. You can invest up to £4,260 into a Junior ISA in 2018/19 – this is called the annual allowance. Anyone can contribute into a Junior ISA, making them a great option for parents, grandparents or other family and friends to save for a child’s future.

Who can open a Junior ISA?

Junior ISAs can be opened for any child who is resident in the UK by their parent or guardian. Once the Junior ISA is open, anyone else (such as a grandparent) can make contributions into the account. The account is held in the child’s name, but they cannot manage the money until they reach 16 and they cannot make withdrawals until their 18th birthday.

Tax benefits of Junior ISAs

Junior ISAs have the same tax benefits as adult ISAs. Investment gains are free from Capital Gains Tax and any investment income or interest on cash savings is free from Income Tax. They don’t need to be declared on your annual tax return either.

0%

You pay no tax on savings or investments in a Junior ISA.

Transferring Child Trust Funds into a Junior ISA

Most children born between September 2002 and January 2011 were eligible for a Child Trust Fund but you can’t have a Child Trust Fund as well as a Junior ISA. New rules introduced in April 2015 allow you to transfer Child Trust Funds into Junior ISAs – giving you more choice and flexibility over how you save for your children’s future.

Transfer a Child Trust Fund

Other ways to invest for children

Some people want to invest more than £4,260 for children each year. Many also want to set up trusts to keep more control over how their money is passed on. In these cases one of Tilney’s expert financial planners can help you with the many other ways to invest for children – download this free guide to find out more.

Download our free guide

Open a Junior ISA

Start saving for your child’s future with Bestinvest’s Junior ISA and you will benefit from:

  • Great value for money with low charges of 0.4% a year
  • An easy sign-up process – you can open an account online in minutes
  • A range of investment options, including a simple way to have your investments managed
Open a Junior ISA Transfer investments

Get in touch today

If you would like more information on Junior ISAs or need help opening an account, please get in touch with our experts.

Free guide

About Junior ISAs

Junior ISA

Find out more about Junior ISA rules and allowances in our free guide.

Download