Natwest Junior ISA
Compare Junior Stocks & Shares ISAs From £10 pm!
Investment ISAs put your capital at risk & you may get back less than you originally invested
- Invest From: £100
- Investment Options: Invest in one of a range of expertly designed investment portfolios depending on your investment style
Why we like it: Invest from £100. Simple, transparent – Invest in one of a range of expertly designed investment portfolios depending on your investment style. All five Nutmeg investment styles are built by experts and use exchange traded funds to diversify across stocks, bonds, industries, even countries. Choose the one that works for you. Nutmeg are regulated by the FCA & are covered by the FSCS. To open a Nutmeg JISA, the child must be under the age of 16 and funds cannot be withdrawn until the child turns 18. Capital at risk. Approved by Nutmeg 09/08/2024
- Invest From: £25 pm
- Investment Options: AJ Bell offer a wide range of investments including shares, funds, investment trusts and ETFs (exchange traded funds)
Why we like it: Which? Recommended Investment Provider. Invest from £25 pm or invest a lump sum up to £9,000 in the current tax year. AJ Bell offer a wide range of investment options. For a “no hassle” option, you can choose from one of 8 funds and AJ Bell Investments will do the rest. AJ Bell offer a “Responsible Growth Fund” focused on companies taking their commitment to the environment and society seriously. . Capital at risk.
- Invest From: From £1 pm
- Investment Options: Choose from one of five investment styles based on risk, and a team of experts build your child’s Junior ISA, choosing which investments to buy and managing them on your behalf
Why we like it: Junior ISA built and managed for you matched to your level of risk. Invest up to £9,000 in the current tax year. No minimum investment, invest from just £1. Raise, lower, or stop and restart your payments any time you like. Available for children under 18. The value of investments and any income can fall, so the Junior ISA could return less than you invest. Returns on investment funds are not guaranteed. Capital at Risk
- Invest From: £25 pm
- Investment Options: Choose from more than 40,000 UK and global investment options for your child's ISA
Why we like it: ii offer a flat fee service which over time could save you money compared to platform providers who charge on the value of investments held. ii offer ready made funds including their ethical funds which allows you to invest in line with your principles covering environmental, social and governance factors. Capital at Risk
- Invest From: £10 pm
- Investment Options: Is an insurance based Junior ISA which invests in stocks and shares via a With-Profits pooled fund
Why we like it: Your child’s money will be invested through a fund manager & will be invested primarily in stocks and shares, with the aim of achieving higher growth over the long-term than might be available through a cash-based Junior ISA. Open a Junior ISA for your child and get rewarded too. . Capital at risk. Please note: As with all investing, your capital is at risk you may get back less than you have put in. The value of the ISA will depend on the performance of the investments and any bonuses cannot be guaranteed. Additionally, if investment conditions are poor, we may apply a Market Value Reduction (MVR)
- Invest From: £100
- Investment Options: Nutmeg offer a socially responsible junior investment ISA which places emphasis on environmental and social and governance factors
Why we like it: Open with a lump sum from £100. Simple, transparent – Socially responsible portfolios are tilted towards companies and bond issuers that have high environmental, social and governance (ESG) standards. Nutmeg invest in exchange traded funds that avoid companies engaged in controversial activities while focusing on those that lead their peers on ESG. Capital at risk. Approved by Nutmeg 09/08/2024
- Invest From: £25 pm
- Investment Options: Invest in over 3,000 funds, UK and overseas shares, investment trusts and ETFs
Good to know: With an HL Junior Stocks and Shares ISA, you can choose investments for your child including UK and overseas shares, Investment trusts, bonds and exchange-traded funds (ETFs). HL have over 1 million clients who trust them for their investments. Capital at risk
- Invest From: £10 pm
- Investment Options: A selection of 9 funds so you can tailor your child's investment
Why we like it: Offers a selection of 9 funds to choose from, including an “International Ethical Fund” so you can tailor your child’s investment. Winner of Best Junior ISA provider for the 2nd year running at the Investment Life and Pensions Moneyfacts Awards 2020. Capital at Risk
- Invest From: £10
- Investment Options: Allocate your savings between a cash money market fund / shares fund from L&G and Fidelity
Why we like it: Rated the Best Junior ISA two years in a row at the Good Money Guide awards. Beanstalk app is free to download and use. The only charge is an annual fee of 0.5% on the value of any investments, one of the lowest around. Rated excellent on Trustpilot. Capital at Risk
Natwest Junior ISA
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 £9,000 for the 2022/23 tax year. The funds in the account are in the name of your child and belong to your child but they won’t be able to 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. At this point, they will be able t do whatever they like with the money.
The Natwest Junior ISA is open to children under the age of 16. However, 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 by following the standard transfer procedure.
Natwest Junior ISA Features
It’s important to note that Junior ISA investments are 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.
However, Junior Stocks and Shares ISAs are tax efficient and there is no capital gains tax and no UK income tax to pay on the income on investments within a Junior ISA and it is possible to make gain higher returns than with a standard Cash ISA.
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
Why Invest in a Junior ISA?
- The potential for higher returns. The NatWest Junior ISA invests in stocks and shares and so 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 – you can 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 £9,000 for the 2022/23 tax year. This creates an easy way for a family to save for a child’s future.
Frequently Asked Questions
Are Junior Stocks and Shares ISAs safe?
Junior Stocks and Shares ISAs are regulated by the Financial Condict Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS).
You are not protected from losses in the value of your investments, but you are covered if your Stocks and Shares JISA provider goes into liquidation.
Can you lose money in a Junior ISA?
If you invest in a Junior Cash ISA, your money cannot go down. However, if you open a Junior Stocks and Shares ISA then the investments you buy could fall in value as well as rise.
Can I withdraw from a Junior Stocks and Shares ISA?
No withdrawals are allowed until your child is 18. They can then make withdrawals at their own discretion.
How do I add money to a Junior Stocks and Shares ISA?
You can top up a Junior Shares ISA online, via your mobile app, over the phone, or by post with a cheque.
You can add money with a lump sum or regular direct debit.
Who can add money to an Ethical Junior ISA?
Anybody can add money to your child’s JISA; however, the accounts must be set up and managed by a parent or legal guardian.
To contribute to someone else’s JISA, you will just need the account reference number and some of the child’s personal information.