Below, are some of the most frequently asked questions about Junior ISAs (JISAs) that may help you decide whether a Junior ISA is right for your child.
A Junior ISA (JISA) is a savings account that allows you to save and invest on behalf of your child. In exactly the same way as an adult ISA, your child receives an annual allowance which can be invested free from Capital Gains Tax and further tax on income received.
Anyone who has parental responsibility for a child who was born on or after 3rd January 2011, or who is under 18 years of age and was born before September 2002.
The child must be a UK resident who does not currently have a Child Trust Fund in their name.
That depends on your own needs. Willis Owen provides access to a Stocks & Share Junior ISA. If you are looking for long-term returns (over at least five years) and are happy to take some risk with your capital then consider a Stocks & Shares Junior ISA.
The Junior ISA allowance between 6th April 2019 and 5th April 2020 is £4,368. A Junior ISA allows you the option to save your whole Junior ISA allowance in a Cash ISA, a Stocks and Shares ISA, or any combination of the two.
Well, quite simply the Treasury has said that many people have monthly savings plans, so the figure should be divisible by 12. So you can therefore invest up to £364 each month, if investing a lump sum is not an option for you.
Each year the government usually increases the allowance in line with the Consumer Prices Index. This announcement is usually made around the time of the Chancellor’s Autumn Budget.
A child can only have one Cash Junior ISA and one Stocks and Shares Junior ISA. Unlike adult ISAs you cannot open a different Cash or Stocks and Shares ISA with different providers each year. This highlights the value of using a platform like Willis Owen’s, where you have access to a wide range of investment instruments in which to invest, all in one place.
For the UK, a tax year starts 6th April and ends 5th April the following year.
The minimum contributions are as follows:
the minimum single contribution is £25
the minimum regular contribution is £25
By applying for a Stocks & Shares Junior ISA through : invest, you can include different investments, such as Funds or Shares, within your Junior ISA.
Yes, and vice versa. If you wish to request a transfer into : invest, you can simply initiate this online and download the transfer form from the 'my documents' area. Complete and return this form and we will contact the provider of your existing ISA to arrange the transfer.
You may hold cash within a Stocks & Shares Junior ISA. This can be a useful facility if you want to utilise your allowance for a particular year but delay the choice of investment or if you decide to switch into cash during market uncertainty.
By investing through : invest, you will have the flexibility to easily trade between hundreds of available Funds, Shares, Investment Trusts and ETFs, whilst maintaining the tax benefits of your Junior ISA.
Yes, it is possible to transfer Child Trust Funds (CTFs) into Junior ISAs (JISAs). This is currently a paper process; please call us if you wish to discuss your options. You can read more about the key features of each and why you might consider transferring from a CTF to a JISA in our Insight Article here.
The charges you pay can be categorised into ‘account charges’ and ‘investment charges’. As part of your annual statement we’ll send you a detailed breakdown of the charges you’ve paid, broken down into these categories. For an FAQ on charges relating to the Aegon platform, click here.
These are the charges you pay to Willis Owen for the services we provide to you, along with certain taxes you pay. This includes (amongst other things) the costs of:
administering your ISA, JISA, GIA or SIPP,
running and maintaining the Willis Owen :invest platform,
arranging to buy or sell investments on your behalf,
our independent investment research and insights, along with our ISA Guide,
providing you access to independent analysis from our expert research partner Morningstar, and
our dedicated customer support services.
These costs are collected from you in the form of our simple ‘service fee’ which is type of ongoing account charge. If you buy or sell shares (excluding Exchange Traded Funds) or investment trusts you may also pay dealing charges, Stamp Duty and a PTM levy (which are collectively referred to as ‘transactional costs’ in your annual statement).
Details of all of our ongoing and transactional account charges can be found within the products & services area of our website.
These are the charges which relate directly to the investments you buy. They are taken by the fund managers either from the capital or the income generated by the funds you invest in, and are not charged by, or paid to Willis Owen.
the services of an expert fund manager (including any performance fees),
administration, legal, audit and registration fees incurred by the fund,
custodianship costs associated with keeping your investments safe,
commissions paid to brokers,
dealing costs and taxes, such as Stamp Duty incurred by a fund when buying and selling investments.
Investment charges can be ongoing (for example administration costs), transactional (for example Stamp Duty paid by the fund when dealing in shares) or incidental (for example performance fees) and are referred to as such in your annual statement.
Willis Owen Limited does not offer or provide advice as to the suitability of investments, if you are unsure whether an investment is suitable for you or require advice you should obtain expert financial advice.
Past performance of an investment is not a guide to future performance, the value of investments or income from them may go down as well as up. You may not necessarily get back the amount you invested.
Willis Owen Limited is authorised and regulated by the Financial Conduct Authority under reference number 121261. Registered in England No.3283706, Ground Floor, 507 (Unit 2), Centennial Business Park, Elstree, WD6 3FG.
The information and content of this site is intended for UK consumers.