Is a Junior ISA right for your child?
A Junior ISA is a long-term tax-free savings account for children. ISA stands for Individual Savings Account. You can open our Junior ISA with just £1.
The child for whom the account is open for must be under 18 and living in the UK. The parent or guardian of the child can open and manage the account but the money belongs to the child. The parent or guardian has no control over the account once the child turns 18 and has access to their money. The child can control the account from age 16 but cannot withdraw funds until age 18.
The Junior ISA limit is £9,000 for the current tax year. This can be split between a Junior cash ISA (which we offer here at The Nottingham) and a Junior Stocks & Shares ISA, which we don’t offer as a product.
Remember, ISA allowances do not roll over into the following year. For example, if you have only saved £8,000 into a Junior ISA in current tax year you won’t be able to add the leftover £1,000 of allowance to the next year.
Money in Junior ISA accounts cannot be withdrawn until the child is 18 and in control of the account.
Yes, you can transfer the funds in the Junior ISA to another provider but you cannot withdraw.
Children can only pay into one Junior cash ISA but they can also pay into a Junior Stocks & Shares ISA during each tax year. The Junior ISA allowance must be split between the two accounts however.
16 and 17 year olds can have both a Junior ISA or a cash ISA. Some ISA providers will also let 16 year olds open cash ISAs but the Lifetime ISA can only be opened at age 18.
No, but you will lose the Junior ISA allowance from that year if you do not use it.
This children’s ISA is an extension of the adult cash ISA and if a child holding one turns 18, the account is rolled over into an adult ISA, protecting the tax-free benefit. When the child turns 18 the funds now belong to them and not the parent.
You can open The Nottingham’s Junior ISA with just £1. Our Junior ISA is available in branch and currently has no withdrawal arrangements on the account which means the money is safe in the account until the child turns 18. We will pay annual tax-free interest into the Junior ISA on 5th April each year until the account matures on the child's 18th birthday.
You should regularly review any savings you have. See our full range of savings accounts, compare interest rates and find the right product for your goals. To open an account, call your local branch and speak to an adviser who can book an appointment for you. If you'd prefer to open an account online, take a look at the accounts that our friends over at Beehive Money currently have.
