What is a junior ISA (JISA)?
A JISA is simply an account designed to save or invest money on behalf of a child. JISAs are opened in the child's name and they'll be able to access the money after they turn 18.
What happens to a junior ISA (JISA) when the child turns 18?
It matures! That means the 18 year old named on the account can move the money into another type of account, or withdraw money if they need it straightaway.
If the JISA is with us, they'll need to create their own online account to access the money.
What are the junior ISA (JISA) rules?
- You can pay up to £9,000 into JSAs in a child's name each year.
- Only parents or legal guardians can open a JISA (but anyone can pay money in).
- The JISA belongs to the child, only they can ever touch the money and only when they turn 18.
How do junior ISAs (JISAs) compare to other ways to save for children?
JISAs aren't the only way to save money on behalf of a child. If you're interested in putting money aside for a child, you might like to think about things like:
- when you want the child to be able to access the money
- your relationship to the child (eg grandparent, parent etc)
- how much risk you're comfortable taking with the money
- what savings accounts the child already has
How do junior ISAs (JISAs) affect tax and benefits?
Like all ISAs, there's no tax to pay when money is moved out a JISA.
In fact, JISAs could even reduce how much inheritance tax your family needs to pay!
Paying into a JISA doesn't affect your own benefits, but having child savings could affect the child's eligibility for some means-tested benefits when they turn 18.
