Junior Cash ISA
The Financial Services Authority is the independent financial services regulator. It requires us, Monmouthshire Building Society, to give you this 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.
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 privilege, plus they're simple to open and allow 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 Any payments cannot be withdrawn until the child turns 18.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. Like adult ISAs, there are two types of Junior ISA account available:
- Junior Cash ISA
- Junior Stocks & Shares ISA
Monmouthshire Building Society only offers a Junior Cash ISA.
Is my child eligible to open a Junior ISA?
All UK resident children under the age of 18, who did not qualify for a Child Trust Fund because they were born before 1st September 2002 or on or after 3rd January 2011, are eligible for Junior ISAs.
The child must be resident and ordinarily resident in the UK, or are a UK Crown servant, married to or in a civil partnership with a Crown servant, or a dependant of a Crown servant.
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.
How much can I save?
- Overall maximum investment is £3,600 in each tax year*.
- Investors may subscribe to ONE Junior Cash ISA and ONE Junior Stocks and Shares ISA only in each tax year, but must not subscribe more than the annual subscription limit across both types of Junior ISA Accounts.
* From 6th April 2013 and until further notice, the annual JISA allowance will increase in line with the Consumer Price Index (CPI).
>> Click here to find out full product details of our Junior Cash ISA.
