Once upon a time, there was something called a Child Trust Fund (CTF), which you've probably heard of. It's a long-term virtually tax-free savings account for children born between 1st September 2002 and 2nd January 2011.
As of November 2011, the Junior ISA has stepped in to fill the shoes of the CTF. Junior ISAs also offer virtually tax-free savings for your children, as long as they are under 18, live in the UK and do not already have a CTF.
The money that you, or anyone else, put into your child's Junior ISA belongs to the child, but can't be taken out until they are 18. They work like any regular savings account: grandparents, long-lost cousins, kindly strangers, friendly companies like KidStart and anyone else can transfer money into them until the £3,600 annual limit is reached.
Cash Junior ISAs and Stocks and Shares Junior ISAs
There are two types of Junior ISA:
Cash Junior ISAs (where you get paid a rate of interest).
Stocks and Shares Junior ISAs (where the value of your savings goes
up or down depending on the performance of the stocks and shares associated with the specific ISA.
Your child can have both of the above (or just one or the other), but the annual limit of £3,600 applies as a total across any Junior ISAs that your child might hold.
Opening a Junior ISA
Thanks to the magic of the internet, you can fill in the application for the Junior ISA of your choice online.
Here are some of the Junior ISA providers we work with:
Take care of your child's future today. Would you like to know more about starting a pension for your child with Virgin Money?
The Jump Junior ISA is a stocks and shares based product that invests in Witan Investment Trust, a well-known and leading global investment trust. Jump offer a range of equity based products designed specifically for adults to save on behalf of a child. Register to receive a free brochure about Jumps range of children’s savings products, including the Jump Junior ISA.
Scottish Friendly, one of the UK's leading friendly societies, has been helping its customers to invest since 1862. When you start putting money away in a Scottish Friendly investment plan or buy life cover, you automatically become a member (or owner) of the friendly society. As a friendly society there are no shareholders. All the profit made is used for your benefit.
Winners of the MoneyFacts Award for Best Child Trust Fund Provider in both 2011 and 2010, Family have over 35 years' experience and currently look after £3 billion worth of Family Money for over 1.7 million families. Family Investments offer a stocks and shares Junior ISA, which you can open with a Direct Debit from as little as £10 a month.
Families use KidStart to put away money for the future. KidStart works with hundreds of the UK's most trusted brands and retailers, including John Lewis, Waitrose.com, Mothercare, House of Fraser & hundreds more, giving you money back on all of your online shopping.