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Here we list our most commonly asked questions regarding junior isa accounts.
What exactly is a Junior ISA Account?
A Junior ISA stands for ‘Junior Individual Savings Account’ (sometimes referred to as a JISA) and it is a savings account for children which offers tax free interest year upon year.
The funds cannot be accessed by the child until they reach adulthood which makes them a perfect long term investment which can really help towards university tuition fees or even towards a deposit on their first house.
What is the Junior ISA limit Allowance?
There is no actual limit to what you can save / invest into a Junior ISA Account. However, please note that the annual Junior ISA Allowance is currently £3720 per tax year. Anything over this amount invested within the same tax year will be liable to taxation.
Can I invest in more than one Junior ISA Account?
Yes. Each child may hold both a cash junior isa and an Investment Junior ISA at the same time (but only one of each). Both accounts can be held with separate providers.
I already have a Child Trust Fund in place, can I also open a Junior ISA Account?
If your child already has a CTF then they will not be allowed a Junior ISA Account.
If you do have a child trust fund then you can continue to make payments into it but the government will no longer contribute towards it. Please note that the government are planning to eventually allow you to transfer a Child Trust Fund to a Junior ISA or they may even plan to merge both products together.
Cash Junior ISA Account or Stocks and Shares Junior ISA Account?
This is entirely up to you.
A cash junior isa account allows you to pay in and save cash in the account like a regular savings account, where a stocks & shares / Investment Junior ISA Account allows you to save investments in the ISA. Please note that each child may hold both a cash and investment junior isa at the same time but no more than one of each account.
Can Grandparents, Uncles, Family members pay into a Junior ISA?
Yes, in fact anyone can contribute towards a Junior ISA including grandparents. Please note however that the total combined investment must not exceed £3720 per tax year otherwise any amount over this allowance will be liable for taxation.
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