Junior Cash ISA - Key Features

The Financial Conduct Authority and the Prudential Regulation Authority are the independent financial services regulators. Monmouthshire Building Society is required to give you this important information to help you decide whether our Junior Cash ISA is right for you. You should read this page carefully so that you understand what you are buying.

This account can only be opened by new customers who live within the following postcode areas: NP, CF, SA, LD, WR, GL, HR, BS, BA, SN, RG, OX, SY and TA. Existing Society customers may open this account.

What is the purpose of this page?

The purpose of this Key Features page is to describe the key features of our Junior Cash ISA product and provide a balanced summary, so that you can make an informed and confident choice about how to save.

Our Junior Cash ISA is an ideal way to make the most of a child's tax-free allowance, plus it is simple to open and allows you to earn an attractive rate of interest.

The Aims

  • To help a child save up to the annual maximum tax-free allowance for a Junior ISA. The amount is governed by HM Revenue & Customs.
  • To build up a lump sum for the child to access when they turn 18.
  • To receive an attractive rate of tax-free interest.

Your Commitment

  • To invest and maintain a minimum balance of £10 in accordance with the Terms and Conditions of the account.
  • To leave all money in the account until the child reaches their 18th birthday. The money cannot be accessed before this time, although it can be transferred to another Junior ISA provider.
  • The child will be the beneficial owner of payments received and over subscriptions will be returned to the child.

Risk Factors

  • The interest rate payable could go down as well as up, depending on general market interest rates and the Bank of England Base Rate.
  • The taxation of Junior ISAs can be changed at any time by the Government without notice.
  • Any payments into a Junior ISA account are considered as a gift to the child and cannot be repaid to the subscriber if at a later date the subscriber changes their mind. Any payments cannot be withdrawn until the child turns 18.
  • Please be aware that inflation may affect the real value of the Junior ISA.

Your Questions Answered

What is a Junior ISA?

A Junior ISA or JISA stands for Junior Individual Savings Account. It allows a child’s savings to grow tax-efficiently. Unlike Child Trust Funds, there will be no government contributions to Junior ISAs. There are two types of Junior ISA accounts available:

● Junior Cash ISA
● Junior Stocks & Shares ISA

Monmouthshire Building Society only offer a Junior Cash ISA.

Is my child eligible to open a Junior ISA?

A child is an eligible child for a JISA if, when the account application is made:
  • they are under age 18.
  • they are resident in the UK, or are a UK Crown servant, married to or in a civil partnership with a Crown servant, or a dependent of a Crown servant.
  • they were born on or after 3 Jan 2011 or do not have a Child Trust Fund (CTF). Funds held in a CTF can be transferred into a JISA, but a child is not permitted to hold a CTF and a JISA at the same time.

Who can open a Junior Cash ISA?

A Junior ISA account can only be opened by a person who is aged 16 or over. Where the child is under 16, the Junior ISA can only be opened by the child’s parent(s) or an adult with parental responsibility for the child. This individual will become the ‘Registered Contact’ and is authorised to operate the account until the child turns 16. At 16, the child is permitted to assume responsibility for the management of their Junior ISA account, and we will request identification from them at this time. If the child is aged 16 or over when they open the account, they are able to open a Junior ISA for themselves but their parent/adult with legal responsibility may still open an account on their behalf.

An existing Child Trust Fund account can be transferred into a Junior ISA - please ask us for details.

How much can I save?

  • The minimum investment is £10.
    The maximum subscription for the 2017/18 tax year is £4,128. This limit applies across all Junior Cash ISAs and Junior Stocks and Shares ISAs held by a child.
    Investors may subscribe to ONE Junior Cash ISA and ONE Junior Stocks and Shares ISA only in each tax year, but must not subscribe to more than the annual subscription limit across both types of Junior ISA Accounts.

    Financial Services Compensation Scheme

    We are part of the Financial Services Compensation Scheme (FSCS). Details of the scheme, and who is covered by it, are available here.

    >> Click here to find out full product details of our Junior Cash ISA.

     
     


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