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Junior ISA
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Junior ISA

Our 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 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 (£4,128 in the 2017/18 tax year).


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 £50 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 2016 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.

Things to consider

You will find more information about the Junior ISA in the key features document and 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  • When the child reaches 18, unless the Plan is closed and the funds withdrawn, the Junior ISA will automatically becomes a Stocks and Shares ISA.
  • The value of the 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
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Product Comparison Table

Product
Children's Savings Plan

Child Trust Fund

Junior ISA
Min prem £5 £10 £50 initial
then £10pm
Max Prem £25
(a taxable version is available if a higher premium is required)
£4,128
for the 2017/18 tax year
£4,128
for 2017/18 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