What is a JISA?
A JISA is a Junior Individual Savings Account and like a regular ISA there are two main types of Junior ISA, Junior Cash ISAs and Junior Stocks & Shares ISAs, which both offer a tax efficient way to save and invest money on behalf of children under the age of 18.
Netwealth offers Junior Stocks & Shares ISAs.
What are the rules of a JISA?
You can open a Cash Junior ISA and a Stocks & Shares Junior ISA for a child under the age of 18 who is resident in the UK, provided that you do not subscribe more than the annual contribution allowance. Netwealth offers a Junior Stocks & Shares ISA.
You can contribute up to £9,000 per child this tax year, or £750 per child per month.
Only a parent or legal guardian can open a Junior ISA in the name of a child. The person opening the account will be the registered contact and will be responsible for how the money is invested. Although the Junior ISA has to be opened by a parent or legal guardian, anyone can make a contribution as long as the total contributions to each JISA do not exceed the annual limit.
You cannot withdraw money from a JISA. Once the child turns 18, the Junior ISA is converted into a regular adult ISA and they will then have full access to their investments and savings, and can withdraw their capital if they wish to.