Junior ISAs were first introduced in November 2011 and provided a replacement to the short-lived Child Trust Fund.
The Junior ISA celebrates its 8-year anniversary on 1st November 2019 and based on the maximum contribution limits, had you opened an account back in November 2011, you could have saved £31,552 of tax-free cash. This, however, could have been slightly more or less based on the type of Junior ISA you opened.
What is a Junior ISA
A Junior ISA is a tax-efficient way of building a savings pot for your child. There are two types of Junior ISAs, a Junior Cash ISA or a Junior Stocks and Shares ISA. The lump-sum accrued over time can be accessed by your child at the age of 18.
Junior ISA features:
- In the 2019/20 tax year, a maximum of £4,368 per child can be invested in a Junior ISA and rises to £9,000 in 2020/21 (any unused allowance cannot be carried forward)
- A Junior ISA can only be opened by parents or legal guardians of the child
- Anybody can contribute to a Junior ISA once it is opened
- A child can have both a cash Junior ISA and a Stocks and Shares Junior ISA but the annual allowance must be spread between the two accounts
- Once your child turns 18 they can access the money or they can transfer it into an adult ISA
Best Cash Junior ISAs - Comparison Table
The below table shows the best cash Junior ISAs as of October 2019:
|Junior ISA Provider||Junior ISA AER interest rate|
|Darlington Building Society||3.25%|
|Family Building Society||2.75%|
|Cumberland Building Society||2.75%|
|Mansfield Building Society||2.70%|
Best Stocks & Shares Junior ISAs
The below table shows the best Stocks and Shares Junior ISAs as of October 2019:
|Provider||Minimum investment||Annual charge||Dealing charge|
|Wealthsimple*||No minimum investment||0.7% (As a Money to the Masses reader, The first £10,000 of your money is managed for free)||Nil|
|Charles Stanley Direct||£500 lump sum or £50 per month||0.35%||Nil for funds|
|AJ Bell Youinvest||£25 lump sum or per month||0.25%||£1.50 per deal online|
|Hargreaves Lansdown*||£100 lump sum or £25 per month||0.45%||Nil|
|Bestinvest||£100 lump sum||0.40%||£7.50|
|Fidelity||£1,000 lump sum or £50 per month||£25 pa flat fee for less than £7,500, or 0.35% pa||Nil|
|Interactive Investor*||£25 lump sum or per month||£120, £168 or £240 pa (charged monthly)||£7.99 per trade, reduced if selecting £168 or £240 pa options|
|Vanguard Investor||£500 lump sum or £100 per month||0.15% (max £375 a year)||Nil|
For more information on the above tables and the best providers for Junior ISAs you may find the following articles useful:
- Best Junior stocks and shares ISA (& best Junior cash ISAs)
- Junior Stocks & Shares ISA Best Buy Table
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following links can be used if you do not wish to help Money to the Masses - Wealthsimple, Hargreaves Lansdown, Interactive Investor
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