Junior ISA

  • Lock away tax-free savings for a child
  • Invest as little as £10 per month
  • Transfer from an existing Junior ISA or Child Trust Fund

Post Office Money® Junior ISA is provided by OneFamily.

Is this right for you?

Our Junior ISA may be right for you if:

  • You’re putting money away for a child for at least 5 years
  • You want to invest in stocks and shares for potentially higher returns
  • You want to open with a regular Direct Debit from as little as £10 per month or a lump sum of £500 or more
     

Our Junior ISA may not be right for you if:

  • You want your child to have access to the money before the age of 18
  • You want a guaranteed return on your investment


Please bear in mind that the value of stocks and shares can fall as well as rise and the child could get back less than has been paid in.

The tax advantages of Junior ISA depend on you and your child's individual circumstances and the tax treatment of Junior ISAs may change in the future.

For help with key terms used, please see the Definitions tab.

How it works

Our Junior ISA is designed to provide a child with a tax-free lump sum at the start of their adult life.

It can be set up by parents and legal guardians of the child with a regular Direct Debit from as little as £10 per month or a lump sum of £500 or more. You can also transfer from an existing Junior ISA or from a Child Trust Fund.

Once the account is opened anyone can contribute by Direct Debit, bank transfer or cheque. The only limit is the maximum amount per year: £4,080 in this tax year (2016-17)

Please bear in mind that only the child can access the money and only after they turn 18.

Management fees

There’s an annual management charge of 1.5% and other additional expenses of approximately 0.2% of the value of the fund.

Boots Gift Voucher Offer

When you set-up a regular Direct Debit of £10 in a Junior ISA we’ll give you a £10 Boots Voucher. Up your Direct Debit to £20 or more and you’ll get a £20 voucher.

Your voucher will be sent to you shortly after we receive your second Direct Debit payment. Gifts are usually received within 90 days of the date of your application.

FAQs

Answers to some of your most common questions

Who can open a Post Office Money® Junior ISA?

A Post Office Money Junior ISA can be opened for any eligible child aged under 16. Only someone aged 16 years or over and who has parental responsibility for the child can open the account. The person who opens the account will be the 'Registered Contact' and is the only person that instructions will be accepted from. Once the child turns 16 they can then decide if they want to become the Registered Contact of the account.

What type of Junior ISA is this?

There are two types of Junior ISA available in the market – a stocks & shares Junior ISA and a cash Junior ISA. Your child can only hold one of each type. The Post Office Money only offers a stocks & shares Junior ISA, which is provided by OneFamily.

An eligible child can hold:

  • just a cash account,
  • just a stocks and shares account; or,
  • both a cash and a stocks and shares account

 

A child can hold no more than one cash account and one stocks and shares account at any one time. This is a stocks and shares Junior ISA

Who is the Post Office Money Junior ISA designed for?

The Post Office Money Junior ISA is designed for parents looking for a long term, investment which will provide potential for growth by investing mainly in UK and overseas shares along with fixed interest investments. Please bear in mind that the value of stocks and shares can fall as well as rise and the child could get back less than has been paid in. You should only consider this account if you are comfortable with the risks involved with stock market based investments and you expect the money will remain invested for at least 5 years. Please note that neither Post Office Money nor OneFamily provide advice. If you have any doubts about the suitability of this product, you should seek independent financial advice.

Where is the account invested?

  • The Post Office Money Junior ISA is invested in the Family Balanced International Fund, which is a sub-fund of an ICVC.
  • The fund aims to achieve long-term growth. It does this by investing mainly in UK and overseas shares, along with fixed interest investments.

ICVC stands for Investment Company with Variable Capital. An ICVC is a type of company or fund specially created to invest in other companies and other investments. ICVCs usually have one or more sub-funds in which investors can buy shares to create a pool of money, which is then managed by an experienced Investment Adviser on their behalf. These experts use this money to buy investments such as stocks and shares. By doing this, an individual’s money can be invested across a wide range of assets, helping to spread the risks associated with investing in stock market linked investments.

Please bear in mind that the value of stocks and shares can fall as well as rise and the child could get back less than has been paid in.

Who can add to the account and how much can be invested?

  • There are two types of Junior ISA available in the market – a stocks & shares Junior ISA and a cash Junior ISA. Your child can only hold one of each type. Post Office Money only offers a stocks & shares Junior ISA which is provided by OneFamily.
  • You can open an account for your child by setting up a monthly Direct Debit for at least £10 or by investing a lump sum payment of at least £500.
  • You can also open a Post Office Money Junior ISA by transferring at least £500 from an existing Junior ISA or Child Trust Fund held with another provider. Before making a decision to transfer your child's Junior ISA or Child Trust Fund you should check if your current provider will charge a fee.
  • Once the account is open, anyone can make payments into the account of at least £10.
  • The maximum amount that can be paid into the account is £4,080 this tax year. If your child holds both a stocks and shares Junior ISA and a cash Junior ISA this limit is shared across both accounts.  
  • The rules for Junior ISAs along with the amount that can be paid into the account are set by HMRC and are subject to change.
  • A tax year runs from 6th April to 5th April the following year.
  • Payments can be made by Direct Debit, bank transfer and cheque

How can I track how the fund is performing?

  • Statements are issued twice a year.
  • You can also receive a current valuation by phone or you can register to view statements online.

What are the charges?

There is an Annual Management Charge of 1.5%. Further annual expenses of approximately 0.2% of the value of the fund will also be deducted. This is an approximate figure and is subject to change. Charges will have the effect of reducing any growth in the fund value.

What tax is payable?

  • The proceeds from the account are free of income tax and capital gains tax.
  • The fund is subject to tax.
  • Tax advantages depend on you and your child's individual circumstances and the tax treatment of Junior ISAs may change in the future.

Can my child’s Post Office Money Junior ISA be transferred?

Yes, your child’s Post Office Money Junior ISA can be transferred in full to another provider at any time.

When can the money be withdrawn?

Only the child can access the money in the account and only once they reach the age of 18

Can I change my mind?

  • Yes, you have 14 days to cancel the account if you change your mind.
  • This 14-day period begins from the date you receive your Welcome Pack.
  • You can cancel the account by phone or in writing.
  • If you instruct us to cancel, any shares held will be sold. If the value of the account has fallen, the proceeds will be less than the amount that has been paid in.

For details of your options following the cancellation of a transfer, please contact Customer Services. Cancellation rights are not offered on transfers between two Junior ISAs that are both provided by OneFamily.

How do I make a complaint?

You can make a complaint by phone or in writing. Once your complaint has been received you will receive a summary of the procedures that will be followed when resolving your complaint. A copy of these procedures is available on request.

If you are not satisfied with the response to your complaint, you may be able to refer it to the Financial Ombudsman Service(FOS).

Definitions

Definitions

0800: All calls to 0800 numbers are free of charge whether made from a landline or mobile phone. Calls may be monitored or recorded for training and compliance purposes.

Junior ISA: Junior Individual Savings Account

There are two types of Junior ISA: cash accounts and stocks and shares accounts.

Providing they are eligible, a child can hold a cash account, a stocks and shares account; or a cash and a stocks and shares account. A child can hold no more than one cash account and one stocks and shares account at any one time. You can invest up to £4,080 into a Junior ISA in the 2016/17 tax year (6th April to 5th April).

Tax-efficient: Returns will be free of UK income tax and capital gains tax.

Online application is fast and secure.

Other Post Office Money accounts suitable for children

Post Office Money Instant Saver and Growth Bond are provided by Bank of Ireland UK.

Instant Saver

Key features:

  • Access online, in branch, by phone, ATM or post
  • Open with just £500: top-up whenever you choose

FIND OUT MORE

Growth Bond

Key features:

  • Choose your term - 1, 2 or 3 years
  • Deposit from £500-£1million
     

FIND OUT MORE

Small print

Information correct as at 6th April 2016

About OneFamily

Post Office Money Junior ISA is provided by OneFamily.

OneFamily is a trading name of Family Assurance Friendly Society Limited (incorporated under the Friendly Societies Act 1992, Reg. No. 939F), of which Family Investment Management Limited (Co. No. 1915516) and Family Equity Plan Limited (Co. No. 2208249) are subsidiaries. Registered in England & Wales at 16-17 West Street, Brighton, BN1 2RL, United Kingdom. Family Assurance Friendly Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Family Investment Management Limited and Family Equity Plan Limited are authorised and regulated by the Financial Conduct Authority.

About Post Office

Bank of Ireland UK is a trading name of Bank of Ireland (UK) plc which is registered in England and Wales (No. 07022885). Registered office: Bow Bells House. 1 Bread Street, London, EC4M 9BE.

Post Office Limited is registered in England and Wales. Registered number 2154540. Registered office: Finsbury Dials, 20 Finsbury Street, London, EC2Y 9AQ. Post Office Money and the Post Office Money logo are registered trademarks of Post Office Limited.