Are you fixed into Junior ISA for 18 years?

jctwins

I need to set up savings accounts for my twins (6 weeks) and think the junior ISA may be a good option.

However from what I can see you can't withdraw or transfer the money for 18 years!

The only reason I'd be moving it would be to get a better interest rate somewhere else but is this not possible?

Does it work the same way as an adult ISA where you can set up a new ISA every year if you wanted to - to get the best interest rates?

I'm confused and feel like if I set these up for my boys they wouldn't get as good a rate as if I set up normal savings accounts with a lower rate but with the possibility of a considerable rate rise over the 18 years.

opinions4u

You can transfer a Junior ISA to another provider at any time via an ISA transfer process.

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/ISAsandJuniorISAs/DG_199672
Have you seen this?

See http://www.hmrc.gov.uk/tdsi/children.htm re tax and parents saving for children outside tax exempt schemes like the JISA.

jctwins

Thanks for the link and both saying that you can move.

I did email the nationwide about their junior isa as this seems to be one of the best, they said...

"I confirm that it is not possible to transfer a Junior ISA to another Provider."

Do you think this is just their account and I should go elsewhere?

opinions4u

jctwins wrote: »

Thanks for the link and both saying that you can move.

I did email the nationwide about their junior isa as this seems to be one of the best, they said...

"I confirm that it is not possible to transfer a Junior ISA to another Provider."

Do you think this is just their account and I should go elsewhere?

If Nationwide's product didn't allow transfers out it wouldn't have Junior ISA tax free status. Halifax Junior ISA pays 6% interest if the parent holds a Halifax ISA.

Their terms and conditions are clear too.

http://www.nationwide.co.uk/savings/legal.htm?acc=smartjuniorisa#savingsTop

Transfers to another Junior ISA provider are free.

atush

Also, if they are 6 weeks, do you really want to invest in just cash?

Over 18 years, you would be crazy to not invest at least half into something equity based? You can do this via an Jisa if you want, but cash will not grow enough to beat inflation in real terms IMHO.

marsbar989

I opened at Nationwide Junior ISA online.
was sent the passbook.
Yesterday paid in a cheque to the account.
Was clearly told by the staff there at the money could not be withdrawn until the child was 18 and as I had put £3,600 in could not put any more in this tax year.
Also that the rate was 2.1% with a 1.15% bonus and bonus applies to 31/1/2014.

All very good I thought.

The child does not have to sign the book, nor do you as trustee as they said this can be done nearer the time (of withdraw) by the "child" with ID.