Childrens ISA - A great way to save tax free for your childs future - Also known as the Junior ISA (Junior Individual Savings Account)
Our regular Childrens ISA is an actively managed account offering 3 different types of funds to invest your money in for either the cautious, balanced or adventurous investor.
Our Ethical Childrens ISA offers a socially responsible investment. Just like all our other Children’s ISA Accounts, this account can be viewed and managed online.
This Shariah Children’s ISA invests inline with the Islamic Investment Guidelines along with advice from the Shariah Advisory Board, offering a fully Shariah compliant ISA for Children.
Saving for your childs future to help provide them with a better start to their adult life is a very important decision.
Whilst there are many different investment options, a Childrens ISA Account offers a way to save tax free for your child / grandchild.
Junior ISAs (Junior Individual Savings Account) are the perfect way to save a little nest egg to use when your child has grown up and is ready to go to university / college, buy their first car or even help them to purchase their first home.
A Children’s ISA account is very similar to a normal ISA for adults in that is has an annual investment allowance of £4000 per annum & any interest earned is tax free.
With a Child ISA the funds are locked in and cannot be withdrawn by the child until they reach adulthood (18 years old).
Childrens ISA in detail
The official term for a children’s isa is ‘Junior ISA’ which stands for ‘Junior Individual Savings Account’.
They were introduced by the government to replace the now redundant child trust fund.
Childrens ISAs work in the same way as a regular ISA in that you can have a Childrens Cash ISA or a Childrens Stocks and Shares ISA (children’s investment isa) and each qualifying child is permitted to hold one of each account..
There is an allowance limit (currently £4000) to how much you can pay into the account each year but any interest earned from any cash or stocks & shares is free from tax.
What makes the Child ISA an interesting investment proposition for your son or daughters future is that they cannot have access to the funds until they reach adulthood.
This makes it an ideal saving platform to help pay for university fees / buying a house etc