Junior ISA FAQs
We answer some of your most
frequently asked questions about the Junior ISA.
Got a question about Junior Stocks and Shares ISAs? We've answered all of your most frequently asked questions below; just click the relevant link to find the answers you need.
General Junior ISA FAQs
What is a Junior ISA?
A Junior ISA (also called a JISA) is type of tax-efficient savings account which can be set up for any UK resident below the age of 18. Just like with an adult ISA, any interest or income received or any gains made are protected against capital gains tax.
This means that when the child turns 18 they can access the assets within the ISA without having to pay additional UK tax.
However, if the child was fortunate enough to be issued a Child Trust Fund (CTF) voucher (sent to UK resident children born between 1 September 2002 and 2 January 2011) then they are not permitted to hold both a CTF and a JISA at the same time – regulations do allow the CTF to be transferred into a JISA.
Find out more about Child Trust Funds
How does a Junior ISA work?
A person with parental responsibility i.e. a parent or legal guardian, can open a JISA for their UK resident children. The person opening the account is known as the Registered Contact and makes all investment and management decisions on the account on behalf of the child. The child must be a UK resident when the account is opened and the first subscription paid, and must be below the age of 18.
Anyone can then pay into this JISA, with the money becoming available to the child on their 18th birthday.
What is the difference between a Cash Junior ISA and a Stocks and Shares Junior ISA?
There are two different types of Junior ISA for holding different kinds of assets. A Cash Junior ISA is essentially a savings account which holds cash and earns interest on that cash holding. This interest rate will vary depending on the provider.
With a Stocks and Shares Junior ISA, it would hold investments. Hopefully the value of these investments would grow over time which would increase the value of the overall holding. These investments could also earn money by paying dividends which can either be held as cash or used to buy more shares.
Be aware, however, that with a Stocks and Shares Junior ISA the value of investments can fall. This could potentially lead to financial losses. The amount gained or lost within a Stocks and Shares Junior ISA would depend on the investments held.
Account Opening FAQs
How do I open a Junior ISA?
You can open a Stocks and Shares Junior ISA with The Share Centre either by applying online or by filling in and returning an application form.
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 growth by investing your money in the stock market via equities, bonds or funds. Each type of Junior ISA provides different levels of control and risk.
Who can open a Junior ISA?
You must have parental responsibility i.e. be the parent or legal guardian for the child in order to open a Junior ISA for them. The child must also be under 18 years old and must live in the UK when the account is opened and first funded. Remember, if they already hold a CTF, they cannot hold a JISA at the same time, but the CTF can be transferred into a JISA.
Do I have to be a UK resident to open a Junior ISA for my child?
No, the child for whom the Junior ISA is being opened must be resident in the UK but the parent or legal guardian opening the account doesn't have to be.
Can my children open their own Junior ISAs?
Children under the age of 16 cannot open a Junior ISA for themselves; this must be done by somebody with parental responsibility.
Children aged 16 or 17 can open their own Junior ISAs but many of the same rules apply as when the account is being opened by a parent: they must be UK resident and under 18 when the account is opened and funded. They cannot hold more than one Junior ISA of the same type, and they cannot hold both a CTF and a Junior ISA – so please do discuss any accounts you manage on their behalf with them.
Once your child has turned 16, they are able to take over the management of their Junior ISA themselves. They still cannot withdraw anything from the account before their 18th birthday, but they would be able to make their own investment decisions and choose the type of product and provider. If your child opts to do this, control cannot revert back to a parent.
Can I open more than one Junior ISA for my child?
A child can only hold one Stocks and Shares Junior ISA and one Cash Junior ISA at any time prior to their 18th birthday. Please note that The Share Centre does not offer Cash ISAs.
Can I have a Junior ISA for all of my children?
If you have more than one child then they can all have a Junior ISA, up to a maximum of one Cash Junior ISA and one Stocks and Shares Junior ISA per child. These Junior ISAs do not have to be from the same provider.
Remember, if they already hold a CTF, they cannot hold a JISA at the same time, but the CTF can be transferred into a JISA.
Can I open a Junior ISA for my grandchildren?
You must have parental responsibility i.e. be the parent or a registered legal guardian in order to open a Junior ISA on behalf of a child. Once the account has been set up anyone, including grandparents, other family members and friends, can pay money into the account. However the initial set up of the account must be done by the child's legal guardians.
Save as you spend with KidStart
Account management and paying in FAQs
How much can I pay into a Junior ISA?
The annual Junior ISA allowance is £4,368 in 2019/20. This can be paid in via direct debit or through lump sum payments of as much or as little as you want.
How can I pay into a Junior ISA?
You can pay in via direct debit, one-off cash payments online or over the phone, or by sending in a cheque.
Our bank details:
Bank of Scotland
Account name: The Share Centre Limited Client Transfer A/C
Account number: 00100130
Sort code: 12-21-37
Send cheques to:
The Share Centre
PO Box 2000
Please ensure you quote the child’s customer reference and account number with any payment.
Who can pay into a Junior ISA?
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.
If you wish to pay into a Junior ISA that you didn’t open, ask the Registered Contact for the child’s customer reference and account number, then contact our customer support team on 01296 414141 and quote these details.
What if I don't use this year's Junior ISA allowance?
Allowances can't be rolled over to the following year, so if the allowance isn’t used within the tax year it will be gone.
Can I withdraw money from a Junior ISA?
No, the money cannot be withdrawn until the child's 18th birthday and only then by the child whose name the ISA is in.
What happens when my child turns 18?
All assets held in a Junior ISA are automatically rolled over into the equivalent Adult ISA once the child reaches the age of 18 and will remain within a tax-efficient wrapper in their name.
For example, if the child has a DIY Junior ISA with The Share Centre, it will automatically become a Self-select Stocks & Shares ISA when they turn 18. The investments made in the DIY Junior ISA will also carry over to the Self-select Stocks & Shares ISA.
At that point the child is entitled to all the assets from the Junior ISA. They can continue saving in the ISA, transfer to a new type of ISA or withdraw any cash and holdings as they wish.
The Share Centre offers a range of ISAs for adults, including Lifetime ISAs, Ready-made ISAs and Self-select Stocks & Shares ISAs.
View our full range of Stocks and Shares ISAs to learn more.
Junior ISA charges FAQs
How much does it cost to open a Junior ISA?
There is no initial cost to opening a JISA with The Share Centre. However, when you open an account, you will need to 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, when you want.
What are the fees?
If you opt for a Ready-made Junior ISA, there are no dealing fees, initial fund charges or monthly admin fees. The annual management charge and ongoing charge for your child’s fund are taken from the fund itself, so you don’t need to worry about paying them separately.
What investments can be held in a Stocks and Shares Junior ISA?
We offer two types of Stocks and Shares Junior ISA – DIY and Ready-made.
With a DIY Junior ISA, the Registered Contact is in control of what the account is invested in. The Share Centre provides a variety of investment types, including shares, funds, investment trusts, bonds, gilts, Exchange traded funds (ETF), Exchange-traded commodities (ETC) and Permanent interest bearing shares (PIBS).
If you open one of our Ready-made Junior ISAs, all money subscribed will be invested in our TC Share Centre Multi-Manager Balanced Inc Fund, which contains a range of funds from well-known providers.
Who can trade on a Stocks and Shares Junior ISA?
Anyone can contribute to the amount invested in a Stocks and Shares Junior ISA, but only the Registered Contact is able to make the investment decisions.
Transferring Junior ISAs FAQs
Can I transfer a Child Trust Fund to a Junior ISA?
If the child has a CTF the Registered Contact can transfer it into a Junior ISA. A child cannot hold a CTF and a Junior ISA at the same time, so transferring requires the movement of the full account from the CTF into the JISA.
You can do this by completing an Application to Transfer a Child Trust Fund form. Follow the link below to find the right transfer form for your situation.
Find and download transfer forms here.
Can I transfer a Cash Junior ISA to a Stocks and Shares Junior ISA?
Most providers will allow transfers from a Cash Junior ISA to a Stocks and Shares Junior ISA, with some stipulations.
Transfers of current tax year’s subscriptions or transfers between the same type of Junior ISA must always be done in full.
Partial transfers are allowed as long as they are between different JISA types eg moving cash from a Cash Junior ISA to a Stocks & Shares Junior ISA or vice versa. Stocks can also be sold to move cash to a Cash Junior ISA.
If the Junior ISA has received subscription this tax year it may be restricted as to what can be transferred, as providers are not permitted to split current year subscriptions.
How do I transfer my Junior ISA to The Share Centre?
All you will need to do is to complete one of our transfer forms and return this by post to us.
Find and download transfer forms here.
Can I move my Junior ISA to another provider?
Many providers will allow the transfer of an existing Junior ISA to them. It is also possible to transfer between the different types of Junior ISA, depending on the type of JISA offered by the provider.
Interested in opening a Stocks and Shares Junior ISA?
View our Stocks and Shares Junior ISA page for information on the different types, how they work and how to open one.