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Home > Child Trust Fund and Junior ISA maturity > What are the next steps for my Junior ISA?

What's next for your Junior ISA money?

At 18, you'll be able to log into your online account and tell us what you’d like to do with the money in your Junior ISA.

What are my choices?

Keep investing your money

Move your money into another product, such as a Lifetime ISA to save for your first home or a Stocks and Shares ISA to save for anything else.

Invest some, spend some

Transfer some of your money into another investment product and withdraw the rest to spend now or invest elsewhere.

Leave some, spend some

Decide how much you want to withdraw and leave the rest where it is in your adult ISA while you decide.

Withdraw all your money straightaway

It’s a good idea to make a plan for how you’ll use your money if you choose this option!

We can’t tell you how best to spend your money, but we can let you know your options when it comes to investing.

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How can I invest my Junior ISA money?

That depends on what you want to spend the money on in the future.

We have two products that both invest in stocks and shares but are designed for different savings goals.

Both are tax-efficient, meaning no matter how much money you make, you won’t pay any tax when you take your money out. They also both come with the option to invest in a climate-focused fund.

Our Lifetime ISA could be right for you if you want to invest your money towards buying your first home at some point in the future.
Our Stocks and Shares ISA might be a better fit if you want to put money aside for anything else or you've not yet decided what you'll spend it on.

Once you turn 18, you'll see an option in your online account to simply transfer money from your Junior ISA into one of these products.

Find out more about investing your Junior ISA money.

Your investment options with OneFamily

For building your first home deposit

Lifetime ISA

This could be a good option only 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.

Read more about our Lifetime ISA

For investing for the future

Stocks and Shares ISA

If you want to put some money aside for university, for setting up a future business 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 two 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.

Read more about our Stocks and Shares ISA

It's worth remembering that the value of stocks and shares can fall as well as rise. This is normal for this type of investment, but you could get back less than has been paid in.

Stocks and Shares ISA vs. Lifetime ISA

Not sure which is most suitable for you? Our short video explains how these two products suit different savings goals.

View Video Transcript

Stocks & Shares ISA vs Lifetime ISA

They say money doesn’t grow on trees, and they’re right. But it does grow elsewhere, like in your Child Trust Fund, which has finally reached maturity.

So, what now? Well you may want to spend some of it, but you could keep your money growing if you wanted, but how you do it and by how much depends on where you put it.

Meet the OneFamily ISA and LISA

ISA is short for Individual Savings Account, whereas LISA stands for Lifetime Individual Savings Account.

In simple terms, both are ways of saving money without paying tax on the income earned, which is very good. So, what are the differences between the OneFamily ISA and LISA?

Similarities first

You can start opening both when you’re 18. They both invest in stocks and shares, and both have a fund which takes more risk for higher potential growth and a lower risk fund for lower potential growth.

They also both have conditions dictating how you invest and withdraw your money.

Now, the differences

With ISA you can transfer in any amount of money from your Child Trust Fund and then invest up to the annual ISA subscription limit of £20,000.

LISA, on the other hand, only allows you to invest up to the current tax year payment limit of £4,000. And you can only take out LISAs until you’re 39.

Before you rush into ISA instead of LISA, LISA gets a 25% government top-up, calculated on the amount you pay in. Although to keep that top-up withdrawals from the LISA must go towards the purchase of your first UK home, or your retirement at the age of 60. Which we know seems a long way off right now, but it’s still worth considering.

Withdrawals for any other reason will be subject to a government charge of up to 25%.

With ISA on the other hand, you can access your money when you need it whatever that’s for, although our Stocks and Shares ISA is considered a medium to long-term investment too, with a better chance of performing well the longer you leave it.

Finally, the admin

Which is the same for both and it’s is very easy, because applying for and managing ISA and LISA can all be done online. You can start a OneFamily ISA or LISA by transferring your Child Trust Fund, with the option to contribute more if and when you like.

Although it’s worth remembering that investment could go down as well as up, so you could get back less than you put in.

So that’s the ISA and LISA in a nutshell. Good to know for your money to grow.

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.