Important: Junior ISAs
The value of investments and the income from them can fall as well as rise and investors may not get back the full amount invested. Past performance is not a guide to the future and any investment does not have a capital or return guarantee. Tax rules can change. Any investment decisions should be made after receiving professional advice. Contact us today to speak to one of our advisors about your investment planning.
Mattioli Woods Limited is authorised and regulated by the Financial Conduct Authority.
A JISA – or a Junior Individual Savings Account – is a tax-free savings account that a parent or guardian can open in their child’s name.
Controlled by the parent until the child’s 16th birthday, a JISA can only be accessed by the child when they turn 18.
Capital at risk. ISA rules apply.
Providing your child with the best start in life is all most parents want to do. Not only does this include educating, feeding and housing your child, but also putting aside money for their future. Although you can open a JISA at any time in your child’s life, the earlier you start the better.
With an annual allowance of up to £9,000 per year, you can give your child the start in life they need – university fees, new car or travel.
This money (and the growth and interest from it) is tax free, making this an ideal wrapper for you to save for your child’s future.
Capital at risk. ISA rules apply.
Get ahead with exciting updates, trends, and expert insights for your personal and professional life. Read more to experience the thrill of being at the forefront.
This could be as a cash ISA or stocks & shares ISA, or a blend of the two! Capital at risk.
SPEAK TO AN ADVISER
In the months leading up to your child’s 18th birthday, they’ll receive correspondence from the JISA provider informing them of the account. Once the child turns 18, the JISA is converted into an ISA in their name. They can then either keep it where it is or transfer it to another provider.
Only parents and guardians of a child can open a JISA on their behalf; however, deposits can be made by others, e.g. other family members.
Although the child can take control of the JISA from their 16th birthday, they cannot access their savings until they turn 18.
An Individual Savings Account (ISA) with an annual allowance of £20,000 per year can also be opened from the age of 18. For a short period, if an individual was born between 6 April 2006 and 5 April 2008, they can open one adult cash ISA before they turn 18, regardless of whether a JISA has been subscribed to for that tax year.
No. This is your child’s money and can only be accessed by them once they turn 18.
As with adult ISAs, you can have a cash JISA as well as a stocks & shares JISA. However, the allowance of £9,000 is per child, which means you can invest as much as you want in either account as long as the combined annual contribution doesn’t go over £9,000.
Yes, you can transfer to another JISA provider. You can also change from cash to a stocks & shares JISA and vice versa.
Currently, you can invest up to £9,000 per child per year into either a cash or a stocks & shares JISA, or a combination of the two.
The Autumn Budget 2024 confirmed the allowance is frozen at £9,000 per year until 5 April 2030.
