It’s a long-term savings account where the child can only withdraw the money once they turn 18. The savings limit for a Junior ISA in the 2024 to 2025 tax year is £9,000.
HSBC doesn’t currently offer Junior ISAs, but you can find out more about them in this guide.
Parents or guardians with parental responsibilities can open a Junior ISA for their child and manage the account. Once the child turns 16, they’ll be able to manage the account themselves.
Alternatively, children aged 16 and 17 can open their own Junior ISA.
There are 2 types of Junior ISA:
With a Junior Cash ISA, your child doesn’t have to pay tax on the interest they earn on their savings, and you don’t have to either.
A Junior Stocks and Shares ISA is a tax-efficient investment account.
Any income or capital growth arising on the investments held in a JISA is exempt from UK income tax and capital gains tax.
Investing has the potential for higher returns than savings accounts. However, there are no guarantees, and the value of investments can go down as well as up.
Your child can have 1 or both types of Junior ISA.
Junior ISAs automatically turn into an adult ISA when the child turns 18.
Junior ISAs and Child Trust Funds (CTFs) are different types of savings products for children.
Your child cannot have a Junior ISA and a Child Trust Fund (a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011).
If you have an existing Child Trust Fund for your child but want to open a Junior ISA, you need to first ask the Junior ISA provider to transfer the Child Trust Fund into the Junior ISA.
A person with parental responsibility can open a Junior ISA for their child if:
You can open an children’s savings account alongside a Junior ISA if your child is saving for something specific and wants to access the money before they turn 18. Eligibility criteria apply.
For more information about Junior ISAs, visit GOV.UK: Junior ISAs.
The value of any tax benefits will depend on individual circumstances.
The tax treatment of ISAs could change in the future.
Tax-free means free of liability to UK income tax or capital gains tax.
This article was last updated: 01/11/2024, 10:06
