It's a children's Savings Account with a Variable Interest Rate and Special Tax Treatment. The account is in the name of the child but must be opened and operated by a Registered Contact. We explain in these conditions who can be a Registered Contact. The account is a 'restricted account' for the purposes of making changes to these conditions or the account's interest rate (see 14.10 of the Personal Banking Terms and Conditions).
To hold a Junior Cash ISA a child must be under 18. When the application to open the Account is made, the child must be either resident in the United Kingdom for tax purposes or subject to United Kingdom tax under section 28 of the Income Tax (Earnings and Pensions) Act 2003, or married to, or in a civil partnership with, or a dependent of such a person. We are required to provide details of all junior ISA holders to HMRC.
A child that has a Child Trust Fund cannot hold a Junior ISA.
Only one. A child can hold a Junior Cash ISA and a Junior Stocks and Shares ISA. From the age of 16 up to their 18th birthday a child can hold a Cash ISA and a Junior Cash ISA and make payments into both accounts up to the relevant yearly allowances.
If a child is under 16 a person who has parental responsibility for the child must open the account as the Registered Contact. The Registered Contact must be 16 or over when they apply to open an account. Between the ages of 16 and 18 a child can open the account themselves as Registered Contact.
The date of the first deposit (which must be at least £1) providing we have a valid application form
If you are transferring a junior cash ISA from another provider, the day we receive the transferred funds. We will pay interest on transferred funds from the date we receive a completed transfer form, provided your funds are free to move
Where the Registered Contact has parental responsibility for the child they will manage the account until it matures when the child turns 18, unless the child tells us that they want to become the Registered Contact after they have turned 16. A child who opens an account as Registered Contact can manage the account themselves.
Yes. From the age of 16 the child can at any time contact one of our branches and ask to be made the Registered Contact for the account. They do not need the agreement of the existing Registered Contact. We will write to the Registered Contact before the child turns 16 to explain the steps the child will need to take to become the Registered Contact. This will include providing evidence of their identity and completing an application form.
Yes. Where the existing Registered Contact agrees, another person with parental responsibility for the child can become the Registered Contact. We can also change the Registered Contact without consent where the existing Registered Contact has died or becomes incapacitated, no longer has parental responsibility for the child, can no longer be contacted or because of a court or equivalent order.
If the account balance reaches its yearly allowance we will not accept any further payments during that tax year. Payments in excess of the yearly allowance will be refused if made in branch or returned using the same method by which they have been paid, for example, standing orders will be returned by electronic payment. The Registered Contact agrees in these circumstances to us explaining to anyone wishing to make a payment into the account that the allowance has been reached and further payments can't be accepted.
The whole of the account balance (deposits and interest) of a Junior Cash ISA with us or with another ISA provider.
All of the payments made to the account (deposits and interest) during the current tax year, and the whole or part of the account balance (deposits and interest) from a previous tax year or years from a Junior Stocks and Shares ISA with us or with another ISA provider.
We will pay interest on amounts transferred from the date we receive a completed application form, providing your funds are free to move.
The whole of the account balance (deposits and interest) to a Junior Cash ISA with us or with another ISA provider;
All of the payments made to the account (deposits and interest) during the current tax year, and the whole or part of the account balance (deposits and interest) from a previous tax year or years to a Junior Stocks and Shares ISA with us or with another ISA provider. If all of the balance in a Junior Cash ISA is transferred into a Junior Stocks and Shares ISA another Junior Cash ISA can be opened as long as payments in do not exceed the yearly allowance.
The Registered Contact must complete a transfer application with the new provider who will send the transfer application to us. Within 5 working days of receiving the transfer application from the new provider, we will send the child's money and information to the new provider.
Other than transfers to another junior ISA, no withdrawals can be made from the account until the child is 18, except if they become terminally ill or die.
If the child becomes terminally ill and the Registered Contact wishes to withdraw funds from the account the Registered Contact must make an application to HMRC (further information can be obtained at www.hmrc.gov.uk). If the application is accepted HMRC will notify us and the Registered Contact. We may ask to see HMRC's letter of consent before we allow any funds to be withdrawn. If the account is closed in these circumstances interest earned up to the date of closure will be paid tax free.
We'll pay interest once a year on 31 March or, if that is not a working day, the next working day. If there is less than £1 in the account we will not pay interest on the amount in the account until the balance is increased above the £1 limit.
The account pays a variable rate of interest - this means that as long as we let you know we can change the rate of interest we pay on the money held in the account. For further details about how we do this, please read the Personal Banking Terms and Conditions.
Any changes made to ISA Regulations that affect these conditions will apply as soon as they come into force. Favourable tax treatment for ISAs may not be maintained (the Government is responsible for decisions about tax treatment).
Yes. The account will no longer qualify as a cash ISA, and we will deduct income tax from the interest earned:
If the declarations that were made when the account was applied for are or become untrue
From the date of the child's death
If HMRC instruct us accordingly
The account will not lose its tax-free status if, after the account is opened, the child moves abroad.
We will notify the Registered Contact if the account becomes or will become subject to the deduction of tax. We will deduct income tax at the appropriate rate from the interest earned, including any interest already paid. We will take this amount from the money in the account before we pay the balance over to the child.
The account will automatically become an instant access cash ISA (or another instant access account if this is no longer available). The child can withdraw matured funds from this account but will have to provide evidence of their identity in order to do so if they are not the Registered Contact when the account matures. We will write to the Registered Contact and the child (if different) before the child turns 18 with more details about the account that the Junior Cash ISA will mature into, how to withdraw funds or transfer them to another ISA provider and the steps the child needs to take to activate their cash ISA account. New funds cannot be added to the cash ISA until the activation process has been completed. If when the child reaches 18 the Junior Cash ISA has no money in it we will close the account and not convert it to a cash ISA. We will not give advance notice when we do this.
Other than when the funds are transferred to another junior ISA (see 21 above) or the child becomes terminally ill (see 23 above) or dies, the account cannot be closed.
If the child dies, the account balance will normally be paid to their estate. When we receive notice of the child's death we will close the account and pay any interest earned up to the date of death tax free. We will transfer the balance to a standard instant access account and provide details of this new account to those people responsible for the child's estate.
Yes. The account can be cancelled at any time before the end of the 14-day period starting on the day the account is opened. If the account is cancelled payments can be made into another junior ISA in the child's name and payments made to the cancelled account will not count towards the child's yearly allowance. If the account is cancelled we will repay the balance (including any interest earned) to the Registered Contact. To cancel this agreement the Registered Contact should speak to one of our branches. There are no charges for cancelling a Junior Cash ISA and no advance notice is required.