Junior Cash ISA (Issue 1)

• Minimum opening and operating balance £1
• Interest is calculated on a daily basis and will be capitalised annually on the 31st December. All interest will be compounded to the account.
• Account holders will be written to at least one month prior to their 18th birthday as a reminder. In the absence of alternative instructions, on their 18th birthday, the account will automatically be deemed to be an “adult” ISA, and will transfer to a variable rate

General Junior ISA points…..

• The annual Junior ISA tax allowance is currently £3720 per annum, rising in line with inflation each year.
• Accounts are held in the child’s name, but opened and managed by a parent or guardian.
• Anyone can contribute to a child’s Junior ISA.
• No withdrawals from the account until the child has reached adulthood (currently considered to be 18), when the child has full access to their capital. Transfers to other Junior ISA providers are permitted without penalty.
• The Junior ISA will have the same tax benefits as an adult ISA, namely no capital gains tax and no further tax on any income. Please note that tax rules can change over time and the benefits to your child depend on their individual circumstances.
• Junior ISA will be available to any child resident in the UK who wasn’t eligible for a Child Trust Fund, namely:

1. children born on or after 3rd January 2011
2. any child under 18 years of age born before 1st September 2002
3. children born between 1st September 2002 and 3rd January 2011 who didn’t qualify for a Child Trust Fund

Version: April 2012