Junior ISA

A Junior Stock and Shares ISA is a type of savings account that allows you to invest in a wide range of investments. It is a tax efficient way to save on behalf of a child. A Junior ISA is only available to children under the age of 18 who are resident in the UK. Parents or guardians can open the Junior ISA and manage the account but the money belongs to the child and the investment is locked away until the child reaches 18 years old.

Child Trust Funds (CTFs) were available to children born between 1 September 2002 and 2 January 2011. Junior ISAs replaced CTFs from 1 November 2011. Both products offer long-term tax-efficient savings for children. However, CTFs were opened with a voucher from the government, usually for £250, whereas Junior ISAs are not opened with any government contributions. Both products have an annual contribution limit of £9,000. The CTF contribution year renews on the child’s birthday, whereas the Junior ISA contribution year renews at the beginning of the new tax year.

A child can only hold one Cash and one Stocks and Shares Junior ISA.

The total contribution between both accounts must not exceed the annual allowance of £9,000.

Please note that a child cannot hold both a Junior ISA and Child Trust Fund (CTF).

To open a Fidelity Junior ISA on behalf of a child, you can apply through our straightforward online application.

Anyone (including grandparents, other family members or friends) over the age of 18 can contribute to a Junior ISA. We cannot accept any contribution from the child, even if they are 16. The registered account holder will be able to apply online.

Once the contribution has been made, the money will sit as cash until the registered contact invests it. The contribution cannot be withdrawn from the Junior ISA once made.

Withdrawal from a Junior ISA can only occur after the child reaches 18 years of age. If your child becomes terminally ill, you can request to access money in the Junior ISA by completing the HM Revenue & Customs (HMRC) terminal illness early access form.

If your child passes away, the Junior ISA will be paid to whoever inherits their estate (usually a parent or legal guardian).

No, a child cannot have both a CTF and a Junior ISA. If they have a CTF, this will need to be transferred into the Junior ISA upon opening one.