When you turn 18 and finally get access to the money in your Junior ISA, do you plan on reinvesting or spending it?
When we talk about “reinvesting” your money, we mean moving the money out of your Junior ISA and into an account that invests it in stocks and shares to hopefully grow your money.
This can feel complicated, and there is a risk that your money could go down, but there’s also more potential for it to grow than there would be if you put it into a cash savings account.
In fact, in every 10-year period since 2000, stocks and shares have out-grown interest rates.*
We make it simple to move money from your Junior ISA into a Lifetime ISA or Stocks and Shares ISA once you reach 18.
But remember, you don’t have to reinvest all of it. You could also take some money out for life right now, if that's what works for you.
*Source: Barclays GILT study 2023.
Your investment options with OneFamily
You'll be able to move money into one, or both, of our ISAs through your online account when your Junior ISA matures.
Lifetime ISA - for buying your first home
This could be a good option if you want to save for your first home or keep your money invested until you turn 60.
The government tops up everything you pay into a lifetime ISA by an extra 25%. You can invest up to £4,000 each tax year so that's up to £1,000 extra available!
But if you take the money out for anything other than buying your first home, HMRC will charge you a withdrawal penalty fee (unless you’ve turned 60, when you can do what you like with the money), so you need to be sure that's what you'll use the money for.
Stocks and Shares ISA - for investing for your future
If you want to put some money aside for university, travelling, or simply for keeping your options open, an ISA might be right for you.
Our Stocks and Shares ISA is a straightforward way to start investing as all you need to do is choose which of our three funds you'd like to invest in.
Unlike a lifetime ISA, the government doesn’t top-up the money you pay into this type of ISA, but you're not limited to using the money for a house deposit. There's no withdrawal fee for taking money out.
Why stay with OneFamily?
What you do with your money once you turn 18 is, of course, up to you. But here are a few reasons why people choose to reinvest their Junior ISA money with us:
Ready to make your choice?
Register or log into your online account to let us know what you’d like to do.
If you want to withdraw some, or all, of the money in your Junior ISA you can choose to do this by bank transfer or by asking us to post you a cheque.
I’m not yet 18
Sit tight for now. If you’re 16 or over, you can register for an online account so you’re ready to go as soon as you do turn 18.
I’m 18 but haven’t got an online account
It’s easy to register, you just need your name, date-of-birth and National Insurance number.
I’m 18 and have an online account
Log in and let us know what you’d like to do with your money. If you’re not decided, don’t worry – you can leave your money where it is while you give it some thought.
