Stocks and Shares Junior ISA
Open a Stocks & Shares Junior ISA and start saving for
your child's future on their behalf.
Whether saving for your child’s university fees, driving lessons or a deposit for their first house, a Stocks and Shares Junior ISA is a great way to save or invest in your child’s future. Parents, grandparents, family and friends can contribute towards giving your child the best start on their journey into adulthood. Just £1.67 a day, from birth, could allow you to build your child a nest egg of £18k by their 18th birthday, so the sooner you start, the better.
What is a Junior ISA?
A Junior Individual Savings Account allows you to save on behalf of a child and build up a pot of money ready for their 18th birthday.
With most forms of saving and investment, any interest or income received, or any gains you make are subject to tax. This can make a significant dent in the overall amount you receive. A Junior ISA enables you to put money away without having to pay any further UK income tax or any capital gains tax on any profits you make. Junior ISAs do not have to be reported on UK tax returns, but the money can only be withdrawn when the child turns 18.
JISAs are available for parents or legal guardians to open for a child under the age of 18, either as a Cash JISA or a Stocks & Shares JISA.
The Junior ISA allowance for 2019/2020 is £4,368. This limit means you have until the end of the tax year (April 5th 2020) to subscribe up to this amount. Once the tax year has ended you will not be able to carry this limit into the next year, however a new allowance will be applicable after this date.
Our Junior ISAs
The Share Centre provides two types of Stocks and Shares Junior ISAs for you to choose from: Ready-made Junior ISAs and DIY Junior ISAs. Both types of Junior ISA provide the opportunity for much greater growth by investing your money in the stock market via equities, bonds or funds. Each type of Junior ISA provides different levels of control.
Leave the investment decisions to the experts with a hassle-free, tax-efficient investment package for your child.
Benefits of a Ready-made Junior ISA:
- Hassle free - Our experts hand-pick and manage your child's investments for you.
- Tax-efficient – No UK Capital Gains Tax or further UK Income Tax to pay on profits.
- No account or 'transfer in' fees - No dealing fees, initial fund charges or monthly admin fees.
Buy and sell a wide range of investments for your child and shelter them from tax.
Benefits of a DIY Junior ISA:
- Pick your own - You're in control of choosing, buying and selling your child's investments.
- Wide investment choice - Invest in shares, funds, investment trusts, bonds, gilts, ETFs and more.
- Fixed monthly account fee - £1.50 per month and a dealing option to suit you.
Ready-made Junior ISA
Leave the investment decisions to the experts with a hassle-free package for your child.
No account fees, dealing fees, or initial fund charges
What you need to open a Stocks & Shares Junior ISA
Once you've decided which type of Junior ISA you'd like to open, it only takes a few minutes to get started. When you apply, you'll need to have:
- A debit card.
- Your National Client Identifier.
- The child’s National Client Identifier (if they have one).
When you open an account, you can either invest a lump sum of £100 or set up a direct debit from as little as £25 a month. After that you can top-up as much or as little as you want.
You should also remember that your investments can go down as well as up in value, so your child may end up getting back less than you put in.
The benefits of KidStart
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Frequently asked questions
Junior ISAs can be opened by parents or legal guardians of a child under the age of 18, provided the child is a UK resident and doesn't already have a Junior ISA or Child Trust Fund. If the child is aged 16 or over, they can open the Junior ISA for themselves.
Any investment instructions made in a Stocks & Shares Junior ISA must come from the registered contact, regardless of who has paid into the account.
Any money held in a Junior ISA is automatically rolled over into the equivalent Adult ISA once the child reaches the age of 18. It will remain within a tax-efficient wrapper. At that point the child is entitled to all the proceeds from the Junior ISA. The child can then continue saving or spend the money as they wish.
The Share Centre offers a range of ISAs for adults, including Lifetime ISAs, Ready-made ISAs and Self-select Stocks and Shares ISAs. View our full range of Stocks and Shares ISAs to learn more.
A child can only hold one Stocks and Shares Junior ISA and one Cash Junior ISA at any time prior to their 18th birthday.
However, when a child turns 16 they can open their own Junior ISAs if they don't already have them. They could then also open an adult Cash ISA thus; a 16 year old could potentially save £24,368 into ISAs (JISA + Cash ISA) this tax year.
Parents or guardians with multiple children can open individual Junior ISAs for each child.
You can pay in via direct debit, one-off cash payments online or over the phone or by sending in a cheque. Please ensure you quote the child’s customer reference and account number with any payment.
Anyone can add money into a Junior ISA. This makes it ideal for grandparents and other family members and friends who want to gift money for the child’s future. However, the account must be opened by someone with parental responsibility.
The annual allowance for Junior ISAs is £4,368 in 2019/20, an increase on 2018/19's limit in line with inflation. This can be paid in via direct debit or through lump sum payments of as much or as little as you want, until the yearly limit is met.
Allowances can't be rolled over to the following year, so if you don't use your allowance within the tax year it will be gone.
The money cannot be withdrawn until the child's 18th birthday. However, they can take control of the investments from the age of 16.