With the help of Slater Financial I can relax safe in the knowledge that my savings are working hard for me.

Julie Carter

With the help of Slater Financial I can relax safe in the knowledge that my savings are working hard for me.

Julie Carter

What You Need to Know About the Junior ISA

May 3, 2016

It’s not just adult savers that can take advantage of everything that an Individual Savings Account (ISA) has to offer. Children, and parents wishing to put away some money on their child’s behalf for the future, can also harness tax-free savings thanks to the range of Junior ISAs currently accessible. As a leading provider of financial advice throughout Derbyshire and beyond, we have the knowledge you need to make the most of ISAs specifically designed for under-18s but what do you need to know about this long term savings option? Is my child eligible? There are generally two criteria that a child applicant must fulfil to obtain a Junior ISA. Firstly, your child must be aged under 18 and secondly they must live in the UK. However, for holders of Child Trust Funds, opening a Junior ISA is not an option, and if you find that utilising a Junior ISA is more beneficial then your chosen provider will be able to transfer any trust fund savings into your new account. Do Junior ISAs have limits? Like the adult ISAs, Junior ISAs do have their limits. For the 2016/17 tax year, the tax-free savings limit is £4,080. As with adult products, there are two types of Junior ISAs to choose from – the cash Junior ISA and the stocks and shares Junior ISA, and you can choose for your child to have one or both ISA types. It is important to note that whilst as a parent or guardian you will retain responsibility when opening and managing an ISA account on your child’s behalf, the money saved using the product strictly belongs to your child. Control is handed over to your child once they reach the age of 16, however they cannot make a withdrawal until they are 18 years of age. How can I choose the best product? Seeking financial advice from an independent adviser is an essential step when choosing an ISA product. Here at Slater Financial, we provide a free 90-minute consultation so you can make the right financial choices for your family. For further information please call 01298 212444. *This article does not constitute financial advice. Slater financial strongly advises you to seek professional advice before making any financial decisions.*

*This article does not constitute financial advice. Slater financial strongly advises you to seek professional advice before making any financial decisions.*