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Junior Cash ISA - Issue 2
Start saving for a child's future by opening a Junior Cash ISA and you can enjoy an attractive rate of tax-free interest.

Available in England and Wales.

Summary Box - Key Product Information:

Account Name Junior Cash ISA - Issue 2
What is the interest rate?
  • 2.00% AER/Tax-free - variable.
  • Interest is variable and calculated on a daily basis on the balance in the account.
  • Interest is paid annually following close of business on March 31 each year.
  • Interest is paid tax-free.
Can Monmouthshire Building Society change the interest rate? 
  • Yes - the interest rate is variable, which means the interest rate can go up or down.
  • In line with our General Terms & Conditions for Savings Accounts (6.9-6.11) we may change interest rates at any time if we reasonably believe the change is needed.
  • If we increase the interest rate, we will display this information in our branch/agency offices and on our website.
  • If we decrease the interest rate, we will notify you by sending you a letter, email or other personal notice 30 days in advance of the change.
What would the estimated balance be after 12 months based on £1,000 deposit?
  • £1,020.00
  • We have worked this out assuming a £1,000 deposit is made, no further deposits or withdrawals are made during a 12 month period, the interest rate stays the same and the interest is added to the account.
How do I open and manage my account?
  • You must be under 18 years old and a UK resident to meet the eligibility for a Junior Cash ISA.
  • Children aged 16 or 17 can open and manage the account themselves in their own name.
  • An account can be opened for a child under the age of 16, and the person applying for the account must have parental responsibility aged 16 or over and will be the registered contact.
  • The account can only be managed by the registered contact on behalf of the child. Once the child turns 16 they can assume responsibility of the account and manage the account independently.
  • You can open and manage your account at any branch or agency office, by post or online (if registered with our ‘My Accounts’ service and aged 16 years or over).
  • Only one Junior Cash ISA can be opened per child. Joint accounts are not allowed. If a child has a Child Trust Fund or a Junior Cash ISA with another ISA provider, they must be transferred as part of the application.
  • The minimum amount required to open an account is £10.
  • The maximum annual Junior ISA subscription is £9,000 for the 2021/22 tax year.
  • This limit applies across all Junior Cash ISAs and Junior Stocks and Shares ISAs held by a child.
Can I withdraw money?
  • No withdrawal or closure of the account permitted until the child is 18.
  • There are exceptional circumstances, please refer to the Withdrawals and Closure section in the Specific Product Terms and Conditions.
  • All money paid into the account belongs to the child and cannot be returned. Only the child can access the money when they reach the age of 18.
  • Transfer to another ISA provider is permitted at any time.
  • Once the account is opened, you have 14 days after the account opening date to notify us in writing that you want to change your mind (the 14 days excludes public holidays).
  • When the child reaches 18, the account will automatically revert to the Society’s variable rate Easy ISA instant access account, or its nearest equivalent at that time, where ONLY the child can access their money or continue to save tax free. This account will be subject to the terms and conditions applicable to the Easy ISA or its nearest equivalent. We will send a letter to the child before their 18th birthday, as a reminder of the maturity date and the options available.
Additional Product Information 
  • You can add to your savings at any time by cash, cheque or standing order, up to the annual Junior ISA subscription.
  • A child can only have one Junior Cash ISA and/or one Junior Stocks and Shares ISA at any time. Available to any child resident in the UK who doesn’t have a Child Trust Fund, or who wishes to transfer in their Child Trust Fund.
  • AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and compounded each year.
  • The Tax-free rate is the contractual rate of interest payable where interest is exempt from income tax.
  • The tax treatment depends on your individual circumstance and may change in the future.
  • Rate effective from 12/06/2020.

Terms and Conditions:

It is important that you read the Product Terms and Conditions and the General Terms and Conditions for Savings Accounts before deciding to open an account.

Specific Product Terms and Conditions for the Junior Cash ISA - Issue 2

1. The account will be opened by us in accordance with the rules for ISAs and Junior ISAs. The detailed rules for Junior ISAs are contained within the Individual Savings Account Regulations 1998 No.1870, and subsequent Amendment Regulations.

Eligibility

2. A child is eligible for a Junior ISA 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 Junior Cash ISA, but a child is not permitted to hold a CTF and a Junior ISA at the same time.

3. Children up to the age of 16 are able to hold up to one Junior Cash ISA and one Junior Stocks and Shares ISA at a time. It is possible to transfer accounts between Junior ISA providers. Children aged between 16 and 18 may hold an ‘adult’ Cash ISA as well as one Junior Cash ISA and one Junior Stocks and Shares ISA at a time, up to the annual subscription limits. A child cannot hold an Innovative Finance ISA or a Lifetime ISA.

Account opening and management

4. You must be under 18 years old and a UK resident to meet the eligibility for a Junior Cash ISA. An application can only be made by a person aged 16 or over. Children aged 16 or 17 can open and manage the account themselves as the registered contact. An account can be opened for a child under the age of 16. Where the child is under 16 only a person with parental responsibility for the child can apply to open the Junior ISA and they will become the registered contact for the account. The person applying for a Junior Cash ISA must be aged 16 or more, and for example could be:

  • the child’s natural parent
  • a person who has legally adopted the child
  • a person who has been granted parental responsibility by the Courts
  • a Local Authority that has parental responsibility for a child in its care
  • The Share Foundation

The child will remain the beneficial owner of all funds in the account. The account can only be opened and managed by the registered contact on behalf of the child. Once the child turns 16 they can apply to become the registered contact and assume responsibility of the account and manage the account independently. They cannot access the money until they reach age 18.

Interest

5. Interest is variable and calculated on a daily basis on the balance in the account. Interest will be added to the account annually following the close of business on 31 March each year.

Taxation

6. Provided the account complies with the ‘Regulations’ all interest arising will be free of UK taxation on income and capital gains. The taxation of ISAs can be changed by the Government at any time without notice.

Appointment and Authority

7. You appoint Monmouthshire Building Society as the provider of the account. We will manage the account in accordance with these Terms and Conditions, our General Investment Terms and Conditions for Savings Accounts, your application form and the Regulations and any other applicable agreement entered into between you and us for the purposes of the account. All Junior ISAs must be managed in accordance with the ISA/Junior ISA rules, and under terms agreed between the registered contact, on behalf of the child where appropriate, and the provider. The Junior ISA must be held in the name of the child and must remain in the beneficial ownership of the child.

8. Where you open the Junior ISA for a child who is aged under 16 and whilst the child remains under 16, only you may provide instructions to us on the management of the Junior ISA. Once the child attains the age of 16, the child may, if they wish, choose to provide instructions to us on the management of the Junior Cash ISA. We will request completion of a share transfer form and identification from the child before they start to operate the account. If the child does not apply to be the registered contact for the Junior ISA, your instruction will remain in force. There can only be one registered contact at any time. The role of registered contact can be passed to another person who has parental responsibility at any time during the lifetime of a Junior Cash ISA, but the status can only be passed with the consent of the existing registered contact.

9. You authorise us to undertake any functions required of an account provider under the Regulations on your behalf and to comply with any other legislation, regulation or government publication which may affect or be in any way connected with the account now or in the future.

10. We shall have authority on behalf of the child to apply to HM Revenue & Customs, and claim repayment of any income tax deducted at source, by including it in the claim submitted to HMRC Repayments (annual returns and tax claims).

11. We will notify you if, by reason of any failure to satisfy the provisions of the Regulations, the account has, or will, become void, or is no longer exempt from tax.

12. We will satisfy ourselves that any person to whom we delegate any functions or responsibilities under the terms agreed with the registered contact is competent to carry out those functions and responsibilities.

Investment Limits

13. The minimum subscription for this Junior Cash ISA is £10; the maximum annual subscription must not exceed the annual Junior ISA limit specified in the ISA Regulations. This limit applies across all Junior Cash ISA and Junior Stocks and Shares ISAs held by a child. If a deposit causes the total amount (ending 5th April) to rise above the subscription limit, we will return the excess deposit. Where the amount paid into the Junior ISA (year ending 5th April) does not reach the maximum subscription permitted, there shall be no addition to the subscription allowed for any succeeding year. The limit excludes any interest added to the account. Once contributions are accepted, they cannot be withdrawn, transferred or returned except in accordance with these terms and conditions (refer to the Withdrawals and Closure section). Electronic payments exceeding the subscription limits will automatically be returned to their source. Other payments exceeding the subscription limits will be returned by cheque in the name of the child. Any money paid into the account by someone other than the child is considered to be a gift to the child and cannot be repaid to the subscriber if at a later date the subscriber changes their mind.

Further Investment

14. You may add to your savings at any time, just call into your local branch or agency office with your passbook and deposit. If it is more convenient you can post the deposit or save through a standing order from your bank account. Funds may be added to the account by any person subject to the subscription limits applicable that year.

Withdrawals and Closure

15. The funds are locked inside the account. No withdrawals are allowed until the child is aged 18 except for the following reasons:

(a) The account may be closed, by either you or us, where we have received notice from HM Revenue & Customs that the child has died under the age of 18; and

(b) You can make withdrawals from the account at any time where we have received notice from HM Revenue & Customs that such withdrawals are authorised because the child is terminally ill. This means disease or illness that is going to get worse and is not expected to live more than 6 months.

16. Otherwise, as set out in these Conditions, you cannot close the account until the child reaches 18. When the child reaches 18, the account will become an Easy ISA instant access account, or its nearest equivalent at the time, and will be subject to the terms and conditions applicable to that account. The adult ISA account will be in the child’s name. We will send you further details beforehand.

17. In the event of the death of the child, any exemption from tax will end immediately. We will continue to deal with the account in accordance with these Terms and Conditions and our General Terms and Conditions for Savings Accounts and the instructions received from the legal personal representative(s) who will become subject to them. HM Revenue & Customs or legal personal representative(s) must notify us of the child’s death, and the legal personal representative(s) must provide us with proof of their appointment. Following receipt of notice of appointment, which is acceptable to us (acting reasonably), we will pay the net proceeds of the account to the legal personal representative(s). Any tax refunds claimed on behalf of the child after their death will be repaid by HM Revenue & Customs. We will provide appropriate statements for the account and any relevant tax certificate to the legal personal representative(s) in accordance with the Regulations.

Transfer

18. You can transfer your Junior Cash ISA account to another ISA provider at any time, free of charge, provided that your chosen new account provider agrees to the transfer and the account is in the same name with the same registered contacts for both accounts.

Subject to the above, on your written instruction and within the time limit specifi ed by you, we will transfer the Junior Cash ISA. We will transfer the whole balance of your existing Junior Cash ISA to the new account provider. Please note that partial transfers are not permitted. On receipt of your transfer instructions from your new ISA manager we will send your funds and information within five business days of the date of receipt.

We accept transfers-in of Junior Cash ISA funds from other Junior ISA managers. On receipt of your transfer instruction, we will send it within fi ve business days to your Junior ISA manager with confi rmation of acceptance. On receipt of the funds and information from your Junior ISA manager we will credit your Junior Cash ISA within three business days. Transfers must take place within 15 business days of the transfer instruction being received by us, unless you stipulate a later date.

The transferring of Junior Cash ISAs is subject to the child not having two accounts of the same type at the end of the transfer process. We do not accept transfers of Junior stocks and share ISAs.

An existing Child Trust Fund account can be transferred into a Junior ISA. You can transfer the full balance of a Child Trust Fund into a Junior ISA, but you cannot hold one of each type at the same time. The Child Trust Fund will be closed following the transfer. If a transfer in request of a Child Trust Fund or a Junior ISA is made, the child and the registered contact on both accounts must be the same. A Junior ISA cannot be transferred into a Child Trust Fund.

Statements

19. We will send the registered contact a statement annually showing how much interest has been earned and the current balance of the account. Please tell us as soon as you can if there is anything on the statement that you think is incorrect.

20. You will promptly advise us of any change in any of the information we hold for your account. You must inform us promptly if you cease to be eligible under the Regulations to subscribe to or hold the account. No further contributions will be accepted to the account if you cease to be eligible in this way.

General

21. This Junior Cash ISA account will automatically revert to an adult Cash ISA account on the child’s 18th birthday. This is a requirement of the Regulations. We will contact the child at least 28 days prior to their 18th birthday to explain the options available. The Junior Cash ISA will revert to the Society’s instant access Easy ISA, (or its nearest equivalent at the time) in the child’s name and will be subject to the interest rate, terms and conditions and the annual subscription limits of an adult Cash ISA account. You and/or the child may not use your account as security for a loan, although it may be used as a means of funding the repayment of a loan. You and/or the child may not transfer any of your rights or obligations under the account.

22. We will send all statements, notices and other document for your Junior ISA to the most recent address notified to us for the registered contact. If the registered contact for the Junior ISA is to change the new contact must complete the required application.

23. We do not have to recognise the interest or claim of any person other than the child for money held in the account.

24. You may cancel your application by giving written notice to the Society up to the 14th calendar day (excluding public holidays) following the day the account was opened and we will transfer the funds to another account or refund your money. Contacting us: Any written communication with us on your Junior Cash ISA should be sent to our Head Office at Monmouthshire House, John Frost Square, Newport, NP20 1PX.

Terms and Conditions

25. These Specific Product Terms and Conditions apply to this account in addition to our General Terms & Conditions for Savings Accounts. Where there is any inconsistency between the General Terms & Conditions for Savings Accounts and the Specific Product Terms and Conditions, the Specific Product Terms and Conditions will apply.

FSCS Scheme