Understanding Junior ISAs
There are two types of JISAs: Junior Cash ISA and Junior Stocks and Shares ISA. Starting a Junior Stocks and Shares ISA while your children are young means they could benefit from compound interest over a more extended period.
Important Note: F G Watts Financial Advisers do not offer a Cash JISA. Plus, unlike a Cash JISA, an investment in a Stocks and Shares JISA does not guarantee capital security.
Who Can Open a Junior ISA?
If you’re a parent or legal guardian of a child under 18, you can open a Junior ISA for them. Not only parents can contribute; grandparents, friends, and relatives can also add money to the account. The only exception is if your child already has a Child Trust Fund.
How Much Can You Invest in a Junior ISA?
For the tax year 2023/24, the Junior ISA Allowance is £9,000. Remember, any unused allowance cannot be rolled over to the following year. Each child can have one Junior Cash ISA and one Junior Stocks and Shares ISA, which automatically converts into adult ISAs when they turn 18.
Withdrawal Rules for Junior ISAs
The funds in a Junior ISA can only be withdrawn once the account holder turns 18. However, your child gains control of their JISA from age 16, allowing them to decide how much to save and how often.
The Advantage of Starting Young
At F G Watts, we believe in the power of early learning about money management. Regular saving from a young age encourages confidence and instils crucial financial skills. You’re not just saving money; you’re helping your child build their future.
Please note that the value of an ISA through F G Watts Financial Advisers will be directly linked to the performance of the selected solutions and may fall as well as rise. You may get back less than you invested. The levels and bases of taxation and reliefs from taxation can change at any time and are generally dependent on individual circumstances.