Consumers
Factsheet
Junior Individual Savings Accounts (JISAs)
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Contact: Simon Rex Date: 21 Oct 2011 |
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Junior ISAs
In October 2010 the Treasury announced a new tax-free children’s savings account, the Junior ISA, which aims to replace the Child Trust Fund. The Treasury will work with stakeholders to finalise the structure of the accounts before their introduction in November 2011. The new account will have the following key features:
- All UK resident children under the age of 18 who do not have a CTF will be eligible for Junior ISAs.
- All returns will be tax-free.
- Both cash and stocks and shares Junior ISAs will be available. Children will be able to hold up to one cash and one stocks and shares Junior ISA at a time (two accounts in total).
- Any person or organisation can make contributions.
- An annual subscription limit of £3,600 which can be split between a cash and a stocks & shares Junior ISAs. There will be no Government contributions into the account. The subscription limit will be indexed by CPI from 6 April 2013 onwards.
- Transfers are permitted between providers, and both ways between cash and stocks and shares Junior ISAs
- Accounts will be owned by the child and funds will be locked in until the child turns 18.
- Children will have the right to manage their accounts from age 16.
- At 16, the child can open an adult cash ISA alongside their Junior ISA
- Junior ISA accounts will by default become adult ISAs on the child's 18th birthday.
- Providers are free to set their own terms and conditions including with regards to minimum contribution limits, charges, and account opening and payment methods that they will accept.
Further information is available in our leaflet on Junior ISAs linked to below
A link to the HM Treasury press release on Junior ISAs can be found via the link below.
