Junior ISA
The Junior ISA investment is linked to shares so the value of the account could fall as well as rise, and your child may get back less than has been invested.
A Junior Stocks and Shares ISA is a way of investing for your children in a tax-efficient fund, where you can invest up to £4,260 for this tax year. The funds in the account are in the name of your child - but they can't withdraw any funds until they reach the age of 18. When they reach 18 years of age the Junior Stocks and Shares ISA will convert to an adult ISA, with the child being the owner.
The Natwest Junior ISA is open to children under the age of 16.
If your child already holds a Child Trust Fund, they can't also open a Junior ISA, but the Child Trust Fund can be transferred to a Junior ISA.
If you are applying for a child who is over the age of 13, please be aware that the NatWest Junior Stocks and Shares ISA is an investment, that typically should be held for a minimum of 5 years. Alternatively you may wish to consider investing in a Junior Cash ISA for your child. Please note NatWest does not currently offer a Junior Cash ISA.
The Junior ISA investment is linked to shares so the value of the account could fall as well as rise, and your child may get back less than has been invested.
Junior Stocks and Shares ISAs are tax efficient. There is no capital gains tax and no UK income tax to pay on the income on investments within a Junior ISA. This tax treatment applies under current legislation. The tax treatment of Junior ISAs may change in future.
There are two ways to setup a Junior Stocks and Shares ISA with NatWest:
- Set up a direct debit for a minimum £20 per month
- Invest a lump sum of £250
Additional Investments
Once you have opened the Junior ISA with the minimum required, you, or friends and family can top up further amounts of £1 or more in the fund up to a value of £4,260 for this tax year.
Apply for a Junior ISA Stocks & Shares ISA online
or
Transfer a Child Trust Fund to a Junior ISA
There are lots of good reasons for investing in the Junior Stocks and Shares ISA.
Here are just a few of them:
The potential for higher returns - The NatWest Junior ISA invests in stocks and shares. It offers the potential for better returns than a Junior Cash ISA over the long term. Unlike a Junior Cash ISA, the NatWest Junior ISA can go down in value as well as up. The growth or income it generates each year can also fluctuate, unlike Junior Cash ISAs which receive a set rate of interest.
Charges – There are no upfront charges, and the ongoing charge is capped at 1.5 % per year.
Top up the investment - why not save regularly with a Direct Debit? Or, you and your friends or relatives can make additional investments from as little as £1 a time, up to a limit of £4,260 for the current tax year. Please note top ups must be in rounded pounds.
Am I eligible to apply for a Junior Stocks and Shares ISA?
Your child can have a Junior ISA if they are under 18 and live in the UK. Your child cannot have a Junior ISA as well as a Child Trust Fund but Natwest now accepts transfers from a Child Trust Fund to a Junior ISA.
The Natwest Junior ISA only accepts children under the age of 16, as we only offer a Junior Stocks and Shares ISA, which is an investment and should typically be held for the long term, i.e. minimum of 5 years. The person applying on behalf of the child must be aged 16 or over.
Where is my child’s Junior ISA invested?
The money will be invested into the Stakeholder Fund, which is an investment fund that invests in equities, bonds and cash. This spread of assets aims to smooth out fluctuations in the share price as the markets rise and fall; however you should note that there is a risk to investing in this fund, and your child could lose money.
The Stakeholder Fund is a Balanced Managed fund. There is a greater level of risk investing in this fund than in a Junior Cash ISA, but a lower level of risk than investing directly in shares.
Will I receive a voucher from the Government?
No. You will not receive any vouchers from the Government.
When can my child take money from their Junior ISA?
The money must remain in the account until your child reaches the age of 18. At that age, your child is free to withdraw the money or continue to invest. The Junior Stocks and Shares ISA will automatically roll over into an adult ISA and we will contact the child to confirm whether they wish to withdraw the account or continue to remain within the adult ISA.
How do I find out how the fund is performing?
Every six months we will send you a statement confirming the value of the investment and how it has performed.
Alternatively the fund prices are published daily in the Financial Times, or you can also go online to NatWest.com to see the fund price at any time.
Can I change my mind?
Yes, you have the right to change your mind within 14 days of setting up the investment. You will receive back the market value of your investment at the time you cancel, or the original investment, which ever is the lower.
Can I transfer money from the Junior ISA to my own bank account?
No. You are unable to take out any of the investment from the Junior ISA account.
When can my child start to manage the account?
When your child is 16 years of age they can manage the account, however they are unable to withdraw any funds until they reach 18.
How can I top up my child’s Junior Stocks and Shares ISA once it has opened?
You can either call us on:
NatWest: 0345 603 4047
Minicom: 0800 404 6161
To top up by debit card, amend an existing direct debit, or alternatively send us a cheque to: NatWest, PO BOX 1188, The Grange, Cheltenham, GL50 9UE clearly stating the account reference and child’s name to which the payment applies.