How do Junior ISAs and ISAs compare?| Junior ISA | ISA |
Annual investment limit: £3,600 | Annual investment limit: £11,280 |
One cash and one stocks and shares Junior ISA can be held at a time, with the maximum £3,600 split between them according to your preference. | Investors can only hold up to £5,640 in a cash ISA with the remainder in a stocks and shares ISA |
Once invested in either a stocks and shares Junior ISA or a cash Junior ISA with an investment provider, each annual allowance must be invested with this same provider unless the ISA is transferred elsewhere. You cannot invest each annual allowance with different providers unless a formal transfer of the investment has taken place. | Each year you have the option of investing your annual ISA allowances with different providers. You also have the option of transferring previous year’s ISAs between providers at any point, without affecting your allowance for the current tax year. However, some providers may charge for this service. |
Ability to switch from cash to stocks and shares and back again, giving you greater flexibility. | You can transfer money held in a cash ISA into a stocks and shares ISA, without affecting your annual allowance, but not the other way round. |
Anyone can contribute into the Junior ISA as long as the total of all contributions does not exceed the annual limit. However, once made, the contributions cannot be returned, and will belong to the child, who will be the account holder. | Subscriptions must be made with the investor’s own money. |
At 16, a child can open their own Junior ISA and at 18, the account automatically becomes an ISA. | N/A |
Contributions are not accessible until the child turns 18. | N/A |
Like the ISA, Junior ISAs can hold bonds, equities, cash and even property shares giving you even more flexibility over the future of the child’s long-term savings. That said, they are still locked in and can only be accessed by the child at the age of 18.
Please remember that the tax rules for both Junior ISAs and ISAs may change in the future and their tax advantages may depend on your individual circumstances. We are unable to give financial advice. If you are unsure about the suitability of your investment, speak to your Financial Adviser.
Please note, your current provider may apply a charge when you transfer your investment.
Whilst your investment is being transferred it will be out of the market for a short period of time and will not lose or gain in value.
You will require Adobe Acrobat to view the pdfs contained within this page.
