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 £9,000 this tax year, and your child’s money could grow tax-free.
It works in a similar way to 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.
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.
How much can you invest in a Junior ISA?
Getting started with our Junior ISA with Healthy Fee Saver
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.
Easy transfer of existing Junior ISA or Child Trust Fund, without affecting your child’s annual Junior ISA allowance for this tax year.
How is our Junior ISA with Healthy Fee Saver different?
The Healthy Living Programme
It’s designed to help you take steps towards a healthier future and rewards you with real financial benefits. It also includes discounts on travel, coffee, gym membership, trainers and much more.
More on healthy living
Healthy Living Discount
Through our Healthy Living Discount, the more you look after your health, the lower your product charge can be – as little as zero every year, when you invest in Vitality funds and reach Platinum Vitality status. This helps you keep more of your money invested and gives you the best chance of building up a savings pot for your child.
More on Healthy Living Discount
A word of funds from leading investment managers
Plus, we offer a range of over 500 funds from other well-known providers.
What are our Junior ISA charges?
Product charge – this starts from 0.45%p.a and is for administering your child’s plan. 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
Transfer a JISA or Child Trust Fund to us
Transfer a JISA or CTF
Capital at risk
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
Junior ISA FAQs
What types of Junior ISA are there?
• 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)?
• 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?
What makes a Junior ISA tax-efficient?
Can I transfer between Junior ISAs?
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’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 £29,000. 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?
Is there a minimum amount I need to open a Junior ISA with?
Can I take money out of my child's Junior ISA?
How many Junior ISAs can my child have?
For example, if you pay £1,000 into a Cash Junior ISA this tax year, only £8,000 can be paid into their Stocks and Shares Junior ISA in the same tax year.
Can you close a Junior ISA?
Can a grandparent open a Junior ISA?
Can anyone else pay into a Junior ISA?
Are there any charges on a Junior ISA?
My child has a CTF. Can I move the money into a Junior ISA?
What if I accidentally pay too much into a Junior ISA?
Will I need to declare a Junior ISA in my tax return?
What happens when my child turns 18?
What if I don't use this year's allowance?
What if I want to invest for more than one child?
2HM Revenue and Customs Individual Savings Account (ISA) Statistics, August 2018