Telephone Contact More

Tel: 01254 222 700

Email: info@redroseassurance.co.uk

More Details

Over 160 Years

Mon-Fri 9:00-16:30

01254 222 700

info@redroseassurance.co.uk

junior-isa.png
Junior ISA (With-profits)
EnquiriesValuations

Junior ISA (With-profits)

Our With-profits Junior ISA gives you a flexible way to potentially outperform a Cash ISA over the longer term without the volatility typically associated with a Stocks and Shares ISA.

You can invest in our With-profits Junior ISA in addition to your cash ISA each year as long as you don’t exceed the annual ISA limit set by the government (£9,000 in the current tax year).

Junior ISA (With-profits) Applications Currently Closed

Please note: We are not currently accepting new applications for our Junior ISA (With-profits).

Please click here to contact us to discuss investments in our modern, alternative products.

Main Product Features

  • Flexible

    There is no fixed term of years (although you should consider it a medium to long term investment, typically 5 years or more) and the proceeds become available when the child reaches the age of 18.

    There is no set premium – you can pay in regularly by monthly direct debit of £10 or more and / or invest lump sums at any time up to the annual Junior ISA limit.

    You can transfer Junior ISAs from other providers to us or transfer your Red Rose Junior ISA to another provider.

  • Tax free

    The Junior ISA provides a tax free return when you cash in, transfer to another provider, or on death.

  • Bonus rate

    The annual bonus declared for 2017 is 4%. The current interim bonus rate is 3.5%. A terminal bonus may also be paid, ensuring that you receive your ‘fair share’ of the profits made by the Society’s with-profits fund whilst you have held the ISA with us.

    The annual management charge is 1.5%.

  • With-profits fund

    The investment is in our With-profits Fund.  This is a mixture of equities, gilts, corporate bonds, property and cash, reducing the volatility typically associated with stocks and shares.

  • How do the charges work on your ISA?

    There are no fees when you pay money in, transfer, or withdraw money, or close the ISA. The only fee is a 1.5% annual amount.

    This is taken out in small amounts each week when the ISA Fund value is calculated. We take approximately 1/52 of 1.5%, so that over the year, we will deduct a total of 1.5%. The actual amount taken each week will depend upon your ISA value each week.

    As an example, if your ISA was worth £1,000 every week throughout the year, your charges would be 28.8p per week. Over the whole year therefore your charges would total £15.

Things to consider

You will find more information about the With-profits Junior ISA in the Key Information Document and Key Features Document. Below are some important points that we want you to be aware of:

  • The proceeds cannot be accessed until the child is 18, although it can be transferred to another provider at any time. You could get back less than you have invested, particularly if the transfer is in the early years of the Junior ISA commencing
  • When the child reaches 18, unless the Plan is closed and the funds withdrawn, the Junior ISA will automatically becomes an Adult Stocks and Shares ISA.
  • The value of the With-profits Junior ISA depends upon future investment performance and the bonus rate could reduce
  • Once added, bonuses become guaranteed and cannot be taken away. However, in order to protect the remaining members of the With-profits Fund, the society reserves the right to apply a Market Value Reduction to encashments during adverse market conditions, in other words when investments drop in value significantly
  • Inflation will have an effect on the future purchasing value of your investment
  • HMRC could change the tax status of ISAs in the future
Junior ISA (With-profits)
EnquiriesValuations

Product Comparison Table

Product
Children's Savings Plan
Child Trust Fund
Junior ISAs
Min prem £5 £10 £50 initial
then £10pm
Max Prem £25
(a taxable version is available if a higher premium is required)		 £9,000
for the current tax year		 £9,000
for the current tax year
Min age at outset Birth Born between 1 Sept 2002 and 2 Jan 2011 Born before Sept 2002 and still <18  or after 3 Jan 2011
Max age at outset 11 See above Born before Sept 2002 and still <18  or after 3 Jan 2011
Min term (years) 10
(must be 16 or older when proceeds taken)		 None
but should be considered a medium to long term plan (5 years or more)		 None
but should be considered a medium to long term plan (5 years or more)
Max term (years) 30 To age 18 To age 18
when proceeds can be taken, or it becomes an 'adult' ISA
Fixed term Yes No
but see above		 No
but see above
Flexible contributions No Yes
can add lump sums, amend or stop regular payments and start again later		 Yes
can add lump sums, amend or stop regular payments and start again later
Life cover Sum assured plus all bonuses added to date of death 101% of the CTF value at date of death 101% of the ISA value at date of death
Transferable No Yes
can be transferred from or to another provider		 Yes
can be transferred from or to another provider

Content © Red Rose Assurance

Website design and Management Whitesands Media and Quaystone