When can you cash in a Junior ISA?
18
A child’s parent or legal guardian must open the Junior ISA account on their behalf. Money in the account belongs to the child, but they can’t withdraw it until they turn 18, apart from in exceptional circumstances. They can start managing their account on their own from age 16.
When can I open a Junior ISA for my child?
While children can start managing their accounts themselves once they reach the age of 16, they can’t get their hands on savings held in CTFs or Junior ISAs until they reach 18.
What is the limit for Junior ISA?
£9,000
Junior Isas are tax-free savings accounts for under 18s. Anyone can pay into a junior Isa, up to a maximum of £9,000 in the 2021-22 tax year, unchanged from the previous tax year. There’s no personal income or capital gains tax to pay on any growth.
Can grandparents pay into a Junior ISA?
Only a parent or guardian can take out a Junior ISA on a child’s behalf. The Junior ISA belongs to the child and the money is theirs when they turn 18. Anyone can contribute to a Junior ISA: grandparents, friends, and family alike.
Can you take money out of a Junior cash ISA?
The only person who can withdraw money from the Junior ISA on behalf of the child is the registered contact. In most cases the withdrawal will be in cash, but if the provider allows, the investments in the account can be transferred to the registered contact directly.
Can I open a Junior ISA for each child?
Yes, you must open a Junior ISA for each child as an account can only be in one name. So, if you have parental responsibility for more than one child, you will need to open a Junior ISA for each of them.
Can a junior ISA lose money?
Over the long term, a stocks and shares Junior ISA offers the potential for larger returns. But it’s worth remembering that its value can fall as well as rise. This is normal for this kind of investment, but it does mean the child could get back less than has been paid in.
Are Junior ISAs a good idea?
When an investment junior ISA is worth it If your child is very young and won’t be able to access the cash more than five years, investing is probably the best option. This is because you have enough time to see investment growth.
What happens to Junior ISA if parent dies?
If your child dies, any money in their Junior ISAs will be paid to whoever inherits their estate. This is usually one of the child’s parents, but it could be their spouse or partner if they were over 16 and married or in a civil partnership.
What happens to my junior ISA when I turn 18?
Any money held in a Junior ISA is automatically rolled over into a normal ISA once the child reaches the age of 18 so it will remain tax-free. The child can then continue saving or spend the money as they wish.
How do I withdraw money from a Junior ISA?
How old do you have to be to have a junior cash ISA?
This long-term, tax-free savings account is a great way for under 18s to start saving. Children aged 17 or under who are resident in the UK. They must be happy to have their savings put away until they turn 18. Children that have a Child Trust Fund can’t also have a Junior Cash ISA but they can transfer the account over in branch.
When did Junior ISAs become available in the UK?
Junior Individual Savings Accounts ( JISAs) became available on 21 November 2011. A JISA is a type of ISA available to eligible children in respect of which instructions are given by a ‘registered contact’. JISA is a voluntary product, and there is no requirement that a child holds an account, or an account of any particular type.
Can a trust fund be transferred into a Junior ISA?
Yes, transfers from Child Trust Funds into Junior ISAs have been permitted since April 2015. Q What happens when a child with a Junior ISA reaches the age of 18? Any money held in a Junior ISA is automatically rolled over into a normal ISA once the child reaches the age of 18 so it will remain tax-free.
Can a 16 year old open a help to Buy ISA?
When a child turns 16 they can also open a normal cash ISA OR a Help to Buy ISA as well as a junior ISA (however, they cannot open an adult stocks & shares ISA or a Lifetime ISA until they are 18). So 16 and 17-year-olds can have a bigger tax-free savings allowance than any other group.