Junior ISA

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What is a Junior ISA?

A Junior ISA (JISA) is a tax-efficient way to invest for your child under 18. You can currently pay in up to £4,368 this tax year, and your child’s money could grow tax-free.

It works just like an ‘adult’ ISA, except the money can only be taken out by the child when they turn 18. When they reach 18, the money belongs to them.

You can have both a Stocks and Shares Junior ISA and a Cash ISA for your child, just as long as the contributions don’t exceed this year’s annual allowance of £4,368.

Our Junior Stocks and Shares ISA features

✓ Easy to start
Open a plan with as little as £50 a month, or a lump sum of at least £1,500. You can apply online in minutes.

✓ Easy to manage
Stop, start, increase or decrease regular contributions, and pay in lump sums at any time, up to your child’s annual Junior ISA allowance. Login to Member Zone to view and manage your investment.

✓ Hassle-free transfers
Easy transfer of existing Junior ISA or Child Trust Fund, without affecting your child’s annual Junior ISA allowance for this tax year.

✓ Potential to boost your child’s ISA even further
Our Investment Booster and Healthy Living Discount could add extra money on top of returns.

Capital at risk

Open a Junior ISA

Why a Vitality Junior ISA is different

You'll get all the same features as other Junior Stocks and Shares ISAs, plus three unique benefits:

1. You could earn extra money - on top of returns

Our unique Investment Booster rewards loyalty by adding extra money to your child's ISA every 5 years, when you invest in Vitality funds

Learn more
2. Access to discounts from leading brands

Open a Junior ISA with us and you'll automatically be part of our Vitality Core healthy living programme which includes a range of discounts from well-known brands, including Champneys and Garmin

Learn more
3. You could pay no product charge

Maintain healthy lifestyle habits and you could save up to 100% on the product charge with our Healthy Living Discount

Learn more

Special offer - 100% cashback on your first year's product charges

We’ll refund all your product charges after 12 months when you open or transfer an ISA between 22nd July and 31st January 2020. And in year 2 onwards, you could continue paying no product charge when you take steps to being healthy. We call this the Healthy Living Discount. Capital at risk and terms and conditions apply.

Learn more about the offer

Junior ISA allowance for tax year 2019-20

£4,368 per child

Transfer a JISA or Child Trust Fund to us

It’s easy to transfer your child’s existing Child Trust Fund or Junior ISA to a VitalityInvest Junior ISA. All you need to do is open a Junior ISA online and let us know how much you’d like to transfer in. You could breathe new life into your child’s investment with our Investment Booster and Healthy Living Discount.

Capital at risk

Transfer now
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Please remember, the value of investments - and the income from them - can go down as well as up, meaning you may get back less than you invest. This information is based on our understanding of existing tax legislation which may change in the future.

A world of funds from leading investment managers

We’ve partnered with leading investment managers, Investec Asset Management and Vanguard, to offer you a range of 15 Vitality funds between risk levels 3 and 8. Each is designed to help you grow your child’s Junior ISA - plus when you invest in these funds, you’ll be able to take advantage of our Investment Booster – get up to 7.7% extra – on top of returns – over 15 years. Simply choose Select a Fund when setting up your ISA.

Plus, we offer a range of over 250² complementary funds from other well-known providers. Select Build a Portfolio when setting up your child’s ISA to add these to their plan.

Explore our fund range

What are our Junior ISA charges?

We make sure the cost of investing is clear, with no surprises. There’s no charge for opening a plan, but there is for the ongoing management of your child’s plan:

Product charge – this starts from 0.5%p.a. It’s tiered so the more you invest, the less the charge rate you pay. And with the Healthy Living Discount you could reduce the product charge. In fact, you might not have to pay one at all.*

Fund charge - for the ongoing management of the funds you choose.

For more details please read:
VitalityInvest Junior ISA Plan Summary
Terms and Conditions
Charges Schedule

Find out more

Did you know?

(on average) is invested by parents into children's savings accounts each year
was invested into Junior ISA accounts in 2017-18
of parents have set up some form of savings for their children. Nearly eight in 10 of those parents deposit into their child's savings regularly

A few things to consider before you start

If you’re opening a VitalityInvest Junior ISA without taking financial advice, please remember that:

Returns on your investment aren’t guaranteed
You won’t be able to withdraw any of the money – only your child can do that, when they turn 18
To open a Junior ISA you must be at least 18 years old, and a UK resident for tax purposes, as defined by Her Majesty’s Revenue & Customs (HMRC)
You’ll be opening and managing the Junior ISA online
Your child must also be a UK resident, as defined by HMRC
The value of your child’s Junior ISA may go down as well as up and you may get back less than you invest
Tax efficiency of JISAs depend on personal circumstances and their tax rules may change in future

Get your child's tax-efficient investment under way. Capital at risk.

Open a Junior ISA Transfer a Junior ISA

Lines are open:
Monday to Thursday: 9am – 6pm
Friday: 9am – 5pm
Saturday and Sunday: Closed

What types of Junior ISA are there?

There are two types:

• Stocks and Shares Junior ISA - invests in funds, unit trusts, bonds and shares in companies. You can decide the exact make-up of your ISA, and you can change it whenever you like.
• Cash Junior ISA - works much like an ordinary savings account, except you don’t pay tax on the interest. It’s usually based on investments in bank and building society savings accounts, and some National Savings & Investments (NS&I) products.

What's the difference between a Junior ISA and a Child Trust Fund (CTF)?

There are two main differences:

• A Junior ISA gives you more say in what kind of assets your money’s invested in
• When your child turns 18 a Junior ISA can stay invested as an ‘adult’ ISA, while a CTF has to be converted into cash

How much can I pay into a Junior ISA?

You can currently pay up to £4,368 this tax year into one child’s Junior ISA(s). That’s the allowance set by Her Majesty’s Revenue and Customs (HMRC).

What makes a Junior ISA tax-efficient?

As long as the investments are kept within a Junior ISA, you don’t have to pay income tax or capital gains tax on the growth of those investments. Any dividends received in the Junior ISA won’t impact your personal dividend allowance.

Can I transfer between Junior ISAs?

Yes. If you aren’t happy with the way your child’s Junior ISA is performing, you can transfer the money to a different provider at any time.

The time it takes to transfer between accounts depends on the provider it’s being transferred from, however it should typically take 30 working days for a Stocks and Shares Junior ISA.

Please note, you can’t transfer money between a Junior ISA and an ‘adult’ ISA.

Who can open a Junior ISA?

You can open a Junior ISA as long as:

• You’re the child’s parent or legal guardian
• You’re aged 18 or over
• The child is under 18
• The child doesn’t have a CTF. If they do have a CTF and want to open a Junior ISA, you must transfer the entire CTF into the Junior ISA
• Your child is a UK resident

A child can only have one Junior ISA. However, a child aged 16 or 17 can open their own adult Cash ISA while holding on to their Junior ISA. Currently, this gives them a combined ISA allowance of £24,368. They can also manage their own cash ISA from the age of 16.

Please note, to open a VitalityInvest Junior ISA, you and your child must be UK residents. Or, if you don’t live in the UK, you must be a Crown Servant (for example diplomatic or overseas civil service) or their spouse or civil partner.

What's the difference between an ISA and a Junior ISA?

With an ‘adult’ ISA you're usually allowed to close the ISA and take the money out whenever you like. With a Junior ISA, only the child you’re investing for can access the money – when they reach the age of 18. But they can manage the account from age 16. You can close and transfer a Junior ISA to another Junior ISA provider, but your child still can’t access until they turn 18. Also, the allowance for a Junior ISA is lower (currently £4,368 a year, for each child). You can invest this amount in cash, stocks and shares, or both.

Is there a minimum amount I need to open a Junior ISA with?

There’s no legal minimum limit, but different ISA providers ask for different minimum amounts. The minimum amount to open a VitalityInvest Stocks and Shares Junior ISA is £50 per month, or a single payment of £1,500.

Can I take money out of my child's Junior ISA?

Only your child can withdraw money from their account - and only when they reach the age of 18. The money is legally theirs. The only exception is if the child becomes terminally ill - then the registered contact (whoever opened the Junior ISA) may be able to take money out early.

How many Junior ISAs can my child have?

They’re allowed one Cash Junior ISA and one Stocks and Shares Junior ISA at any one time. You can currently divide the Junior ISA allowance of £4,368 between them however you like.

For example, if you pay £1,000 into a Cash Junior ISA between 6 April 2019 and 5 April 2020, only £3,368 can be paid into their Stocks and Shares Junior ISA in the same tax year.

Can you close a Junior ISA?

You can’t close a Junior ISA plan until your child turns 18. When your child reaches 18 they can withdraw the money, or it automatically matures into an adult ISA.

Can a grandparent open a Junior ISA?

Grandparents are not able to open a Junior ISA for a grandchild, but once one is set up by parents, they can make contributions up to the tax allowance, currently £4,368.

Can anyone else pay into a Junior ISA?

This will depend on your provider. Some providers will only allow the registered contact to pay into the Junior ISA, other providers will allow anyone to pay in. But the total amount contributed by everyone in one tax year can’t go over the allowance of £4,368.

Are there any charges on a Junior ISA?

Not if it’s a Cash Junior ISA. However, if you invest in a Stocks and Shares Junior ISA, you’ll usually pay management fees.

My child has a CTF. Can I move the money into a Junior ISA?

Yes, transferring money from a CTF to a Junior ISA has been allowed since April 2015. But you’d need to close the CTF altogether, as your child can’t have a Junior ISA and a CTF at the same time.

What if I accidentally pay too much into a Junior ISA?

Don’t worry, HMRC will notice this has happened and contact you. The Junior ISA provider will then return the excess amount to you. But if you spot the error first, you can contact HMRC and let them know.

Will I need to declare a Junior ISA in my tax return?

No, there’s no tax to pay on a Junior ISA, so HMRC doesn’t need you to give any information about it.

What happens when my child turns 18?

The Junior ISA automatically converts to an ‘adult’ ISA, the child becomes the registered contact for the account. They then have control of the money, free to spend it, keep it invested in the ISA or re-invest it elsewhere.

What if I don't use this year's allowance?

Then it’s gone for good. Junior ISA allowances can’t be carried over to the following year.

What if I want to invest for more than one child?

You can currently invest up to the allowance of £4,368 a year for each of them. For example, if you have three children under 18, you can invest a total of £13,104 in Junior ISAs each tax year.

* If you open a Junior ISA with us and earn enough Vitality points through our Vitality Core healthy living programme to reach Platinum status, the product charge is zero. Terms and conditions apply. Learn more.

¹Investec assets under management at 30 June 2019: £118.9 billion
Vanguard assets under management at 30 June 2019: £4.2 trillion
² Source: VitalityInvest Retirement Plan VitalityInvest ISA and Junior ISA Fund List April 2019
³ Report: Children's savings accounts and products (2014) YouGov.co.uk
⁴ HM Revenue and Customs Individual Savings Account (ISA) Statistics, August 2018