Junior ISAs are the replacement for Child Trust Funds, which were abolished in 2011. They are very similar and key things to know about Junior ISAs are:
|Tax benefits||Junior ISAs have all the same tax benefits as normal ISAs - there is no tax to pay on income and gains|
|Restrictions||A child can only have one Junior ISA or Child Trust Fund in their life, but more money can be put into it each year up to the annual limit. A child's Junior ISA can also be transferred to a different provider, or switched to different investments within the same provider.|
|Age limits||You can set a Junior ISA up for a child at any time from birth to age 18. Once the child turns 18 the Junior ISA automatically converts into a normal ISA.|
|Putting money in||The Junior ISA limit for 2017/18 is £4,128. A parent needs to set up the Junior ISA, but once this is done anyone (eg Grandparents) can pay money into it. Just select "pay in" from your account as usual, and ask the other person to provide a cheque.|
|Getting money out||The money cannot be withdrawn until the child turns 18. At this point the child can withdraw the money if they wish. If they choose not to withdraw the money at age 18, the Junior ISA simply converts to a normal ISA.|
|Ownership||The Junior ISA is owned by the child, but set up by a parent who administers the Junior ISA until the child turns 16. At this point the child can choose to administer the Junior ISA themselves, but cannot withdraw money until they are 18.|
|Risk and return||We only offer stocks and shares Junior ISAs. These will probably provide higher returns than cash ISAs in the long term, but there is a risk that you get back less than you put in. Our risk/return explorer can help work out if investing is for you.|
|Minimum investment||The minimum investment is £100 or £50 per month.|
For more details, see the Junior ISAs key features document.
All Junior ISAs held via Smarterly benefit from our free SmarterCare investment risk and performance monitoring service.
SmarterCare's powerful algorithms will check up on the Junior ISA every single day and send you an email if any of its alerts are triggered.
All your investments with Smarterly, including your children's Junior ISAs, show up in your account area of our website.
From your account you can do all the standard things you'd expect to be able to do, and a few that you might not, like up-to-date "good case" vs "bad case" projections of what the Junior ISA might be worth in future.