NS&I has launched a new junior ISA.
It offers a 2% tax-free/AER (variable) interest rate and has a maximum subscription limit of £4,128 for 2017/18. It comes with 100% capital security guarantee as NS&I is backed by HM Treasury.
The key features of the Junior ISA were laid out in a statement from NS&I:
- the account can be opened and managed online-only at nsandi.com. All deposits will be electronic and communications will be paperless (a channel preference of email or text message for notifications are to be defined by the customer);
- interest rate at 2.00% tax-free/AER (variable);
- minimum deposit: £1;
- subscription limit for this tax-year (2017/2018): £4,128;
- anyone can make a deposit into the child’s account, not just parents, but the account must be opened and managed by a person with legal responsibility for the child, until the child reaches the age of 16;
- at 16, the child may apply to take control of the Junior ISA;
- at age 16 and 17, the customer can open and manage a Junior ISA themselves;
- as with all Junior ISAs, no withdrawals are permitted before the child is 18;
- NS&I’s Junior ISA will accept transfers in for both Child Trust Funds and other Junior ISAs (cash and stocks and shares), and will allow transfers out to other providers’ Junior ISA products.
NS&I Acting Retail Director Jill Waters said: “More money is now deposited with NS&I online than any other individual sales channel and our Junior ISA offers parents a simple and modern account for their children’s savings. This tax-free account will allow £4,128 to be invested, over this tax year for children aged under 18 with NS&I’s 100% capital guarantee.
“Our new Junior ISA will also allow third-parties to deposit in to the product electronically, which means that grandparents and other relatives and friends of the child or family can add additional funds once the account has been opened.”