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

A stock and shares Junior ISA is a type of savings account that allows you to invest in a wide range of investments. It is a tax efficient way to save on behalf of a child.

Find out more about our Junior ISA.

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 2020/21 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The contribution cannot be withdrawn from the Junior ISA once made.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 £50 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.

If you hold less than £7,500 you will pay a flat rate fee of £2.08 per month or our standard service fee of 0.35% for holdings over £7,499.99.

All fees and charges will be taken from cash held within the account first.

If there is not enough in your cash account, we will then sell investments to compensate and will inform you before this process takes place.

You can see all the applied charges and fees by logging into your Fidelity account online. Discover more about our fees and charges.