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Junior ISA
Whatever your hopes for your child’s future it’s likely some of them will have costs attached so a Junior ISA is a flexible and tax-efficient way to put aside some money for them.
For the 2017/18 tax year you have an annual allowance of £4,128 which you can put into investments, cash, or any mixture of the two. Any investments you choose to put into a Junior ISA will be sheltered from capital gains tax and any further income tax.
Fidelity’s Junior ISA was awarded Best Investment ISA in 2017 by Moneywise so whether you’re looking to put aside a lump sum to enable your child to get on the property ladder, or save monthly to fund the increasingly expensive cost of a university education (estimated at around £44,000 for English students in 2016*), Fidelity can make saving for these easier.
Follow the steps below to open a Junior ISA by investing £500 as a lump sum or £50 in a monthly savings plan now.
The value of investments can go down as well as up so your child may not get back the amount you invest. Tax savings and eligibility to invest in a Junior ISA depend on personal circumstances. All tax rules may change in the future. Fidelity Personal Investing only gives information about products and services and does not provide investment advice based on individual circumstances. If you are unsure of the suitability of an investment you should speak to an authorised financial adviser.
*Source: Sutton Trust and Education Endowment Foundation – April 2016.
Fidelity Junior ISA at a glance
- This is a Stocks & Shares ISA that also allows you to hold your investments in cash. This means if you're concerned about the market's prospects you can shelter your money in cash, then move it quickly and easily to investments when you believe the markets have more potential.
- Invest up to £4,128, the Junior ISA allowance for the current tax year.
- View and manage the account online, 24 hours a day with our online Account Management service.
- The Junior ISA has to be opened on behalf of the child by a parent or guardian.
- Once set up, anyone can contribute to a child’s account at any time, up to the annual limit.
- The money is invested and locked away until the child is 18. When the child is 18 it becomes their ISA and they assume full control.
- Junior ISAs are long-term tax-efficient savings accounts for children. A Junior ISA is only available to children under the age of 18 who are resident in the UK. It is not possible to hold both a Junior ISA and a Child Trust Fund (CTF). If your child was born between 1 September 2002 and 2 January 2011 the Government would have automatically opened a CTF on your child's behalf. If your child holds a CTF they can transfer the investment into a Junior ISA. Please note that Fidelity does not allow for CTF transfers into a Junior ISA. Parents or guardians can open the Junior ISA and manage the account but the money belongs to the child and the investment is locked away until the child reaches 18 years old.
- Any contribution to a Junior ISA is a gift to the child and it cannot be returned to the contributor at a later date if the contributor subsequently changes their mind.
