Junior ISAs Explained

A Junior ISA is a tax efficient child savings account introduced in 2011 to replace the Child Trust Fund scheme. It offers a way to save on behalf of a child.

There are two types of Junior ISA options: cash ISA and stocks and shares ISA. Currently, Fidelity only offers the stocks and shares Junior ISA account.

Find out more about Junior ISAs

Child Trust Funds (CTFs) were available to children born between 1 September 2002 and 2 January 2011. Junior ISAs replaced CTFs from 1 November 2011.

No, a child cannot have both a CTF and a Junior ISA. If they have a CTF, this will need to be transferred into the Junior ISA upon opening one. Please note that Fidelity does not allow for CTF transfers into a Junior ISA.

Any child who is a resident of the UK and does not hold a Child Trust Fund is eligible for a Junior ISA as long as they are 17 years old or under. Once a child reaches 18 years of age, they are no longer eligible for one, but will be eligible for an ISA.

The Junior ISA allowance for tax year 2022/23 is £9,000. The allowance can be split between a cash and stocks and shares Junior ISA, allowing a child to have two accounts.

Read more about the Junior ISA allowance.

Anyone (including grandparents, other family members or friends) can contribute to a Junior ISA. The registered account holder will be able to apply online.

Once the contribution has been made, the money will sit as cash until the registered contact invests it.

The contribution cannot be withdrawn from the Junior ISA once made.

You can set up a regular savings plan for a Junior ISA online and contribute from as little as £25 a month.

A Junior ISA will automatically be converted into an adult ISA account when a child reaches 18 years of age. The child will be able to manage the account by registering for online access. Find out more about our ISA.

Withdrawal from a Junior ISA can only occur after the child reaches 18 years of age. If your child becomes terminally ill, you can request to access money in the Junior ISA by completing the HM Revenue & Customs (HMRC) terminal illness early access form.

If your child passes away, the Junior ISA will be paid to whoever inherits their estate (usually a parent or legal guardian).

Income from a Junior ISA can be either reinvested or kept as cash within the Fidelity cash account.

We don’t charge a service fee on investments held  in junior accounts, however you will still get access to all the great benefits Fidelity offers, including award-winning guidance, on-the-go access, and support with investing.

Investment charges set by companies managing your funds

Ongoing fund charges are set by the companies who manage the funds and start from 0.05%.

Some funds may also have:

• a bid-offer spread, which is effectively a charge applied when you buy or sell
• a performance fee
• a fund manager buy or sell charge.

We’ve negotiated discounted ongoing charges on hundreds of funds on our platform. We recommend checking each investment's factsheet for more information, as investment charges as can differ between funds.

View fund discounts

Share dealing and other charges

• There is a charge made for each buy and sell transaction you place (including switches and dividend reinvestments). This will be deducted from the amount invested or raised through a sale.
  • £1.50 for deals as part of a regular savings or withdrawal plan, or for a reinvestment of income or a dividend.
  • Simple charge of £10.00 for each deal placed online
  • Phone trades are charged £30.00 for each deal.
• Stamp Duty, levies and taxes:
  • UK Stamp Duty of 0.5% applies when you buy UK shares
  • Irish Stamp Duty of 1.0% applies when you buy Irish shares
  • UK Panel of Takeovers and Mergers levy of £1 applies on UK share deals of over £10,000
  • Irish Takeover Panel levy of €1.25 applies on Irish share deals of over €12,500
• Foreign exchange charge applies for dealing in offshore funds that are not in sterling.

Download the Doing Business with Fidelity document for more fees and charges information.