Established 1863

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01254 222 700

info@redroseassurance.co.uk

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Junior Shariah ISA
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Junior Shariah ISA

Our Junior Shariah ISA gives you a way to save, compliant with your Shariah beliefs, in a flexible way to potentially outperform a Cash ISA over the longer term.

You can invest in our Junior Shariah ISA in addition to your Cash ISA each year as long as you don’t exceed the annual ISA limit set by the government (£4,260 in the 2018/19 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 £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 Shariah ISA to another provider.

  • Tax free

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

  • 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 prohibited from investing in financial derivatives or other non-Shariah compliant instruments.

    We are aware of the importance of the Fund complying with Shariah law. 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

    Approving suitable charities for the donation of ‘non Halal’ income

    Preparing an annual certificate of the Fund’s compliance with Shariah principles

  • Where does the Fund invest?

    The Fund is managed by a specialist team at HSBC. The HSBC Islamic Global Equity Index Fund (the Fund) aims to create long term appreciation of capital through investment in a diversified portfolio of securities. It aims to track the Dow Jones Islamic Market Global Titans 100 Index which is Shariah compliant – all companies included in the Index are screened by the Shariah Supervisory Board which is a committee of 4 Islamic Scholars.

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

    The Fund invests in diverse areas including Technology, Health Care, Consumer Goods, Industrials, Oil and Gas, Consumer Services and Basic Materials.

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:

  • 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 Shariah ISA commencing
  • When the child reaches 18, unless the Plan is closed and the funds withdrawn, the Junior Shariah ISA will automatically becomes a Stocks and Shares 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
  • 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)
£4,260
for the 2018/19 tax year
£4,260
for 2018/19 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