The Junior Cash ISA is designed to help you save for your child’s future and so the money invested is held for the child until age 18 when the account will be converted into an adult Cash ISA. Funds will then be available for them to withdraw or alternatively their savings can remain in the adult Cash ISA and continue to earn tax-free interest.
If your child is under 18, resident in the UK and does not hold a Child Trust Fund, the Junior Cash ISA may be exactly what you are looking for to start saving for expensive third level education, travel experience, or a helping hand onto the property ladder.
- A children’s savings account with the same tax benefits as an adult Cash ISA – exempt from UK income and capital gains tax
- Annual subscription allowance, currently up to £3,600 per child for the tax year 6 April 2012 – 5 April 2013. The annual subscription allowance is reviewed by HM Revenue and Customs (HMRC) for each tax year and is based on the Consumer Price Index
- The account is held in the child's name, but opened and managed by someone with parental responsibility for the child, or the child themselves if aged 16 or 17. However, it's not just your child that can benefit from a Junior Cash ISA - if you are aged 16 or 17 and resident in the UK, then you can open a Junior Cash ISA for yourself. Even if you already hold an adult Cash ISA, you can still hold a Junior Cash ISA and make the most of its tax-free allowance
- If the child already holds a Junior cash ISA with another provider, you can still transfer it to us if you wish. We will pay interest on the full amount to be transferred as soon as we receive the application, provided the funds are free to move and not held in a fixed-term or notice account
- Anyone can make subscriptions to the Junior Cash ISA - you don't have to have parental responsibility for the child to do this
- No withdrawals are permitted until the child reaches age 18 and the account becomes an 'adult' Cash ISA - then the child has full access to the funds
- An attractive rate of interest, paid annually on 31st December (or the next business day if this falls on a weekend)
- Subscriptions may be made by way of a lump sum and/or regular savings
- A minimum subscription of £25 is required to open a Northern Bank Junior Cash ISA
- Statements are available at regular intervals of your choice (at least every 6 months)