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Junior Shariah ISA

Our Junior Shariah ISA gives you a way to invest, compliant with your Shariah beliefs.

Fund Unit Price Since Launch

The following graph shows the unit price of the Junior Shariah ISA since launch in February 2019.

Click To Enlarge

Please note: This is a risk investment. Past performance is no guide to future returns. You could get back less than you invested.

Junior Shariah ISA Performance Example

Example based on an initial investment of £10,000 on 1st January 2020:

Period Performance 1 Jan Investment 31 Dec Value
1 Jan 2020 to 31 Dec 2020 +19.3% £10,000 £11,936
1 Jan 2021 to 31 Dec 2021 +26.9% £11,936 £15,152
1 Jan 2022 to 31 Dec 2022 -16.9% £15,152 £12,592
1 Jan 2023 to 31 Dec 2023 +25.6% £12,592 £15,816

Please note: This is a risk investment. Past performance is no guide to future returns. You could get back less than you invested.


Main Product Features

  • Flexible. You can:

    Pay in regularly using direct debit with a minimum of just £10pm

    Change the amount or stop paying at any time

    Pay in occasional lump sums via BACS or cheque

    Transfer a Junior ISA from other providers to us

    Transfer our Junior ISA to another provider

    Invest in our Junior Shariah ISA in addition to your Cash ISA each year

  • Accessible at age 18

    The Junior ISA helps build up a lump sum that becomes available when the child is 18

  • Tax free

    Our ISA provides a tax free return when you cash in, or transfer to another provider

  • Shariah compliant fund

    An investment fund which meets all of the requirements of Shariah law and the principles of Islamic Finance. The Fund will only invest in Shariah-compliant companies and approved financial instruments.

    The Fund is overseen by an independent Shariah Committee that is responsible for:

    Agreeing the investment objectives and policies

    Advising the fund managers regarding compliance with Shariah principles

    Establishing the principles for calculating an appropriate percentage of ‘non Halal’ income and approving suitable charities to receive it

  • Where does the Fund invest?

    The Fund is managed by a specialist team at HSBC. The HSBC Islamic Global Equity Index Fund  invests in diverse areas including Technology, Health Care, Consumer Goods, Industrials, Oil and Gas, Consumer Services and Basic Materials.

    The Fund does not include companies in the following sectors: Weapons and Defence, Pork related products, Tobacco, Alcohol, Financial Services or Entertainment sectors.

  • 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 Junior Shariah ISA in the Key Information Documents and Key Features Document. Below are some important points that we want you to be aware of:

  • When the child reaches 18, unless the Plan is closed and the funds withdrawn, the Junior Shariah ISA will automatically become an Adult Shariah ISA.
  • This is a medium to long term investment (5 years or more).
  • Please note that this is a risk investment – there is no guarantee that you will get your money back. The value of your Junior Shariah ISA can go down in value as well as up, and is based upon the performance of the underlying investments in the Shariah Fund.
  • There is an annual contribution limit set by the Government for JISAs (in total for Cash JISAs and Stocks and Shares JISAs if someone contributes to both types). This is currently £9,000.
  • 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 Shariah ISA
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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