What is a Junior ISA?
Junior ISAs were introduced in 2011 after the Child Trust Fund (CTF) Scheme closed. Up to £4,260 per year can be invested into a Junior ISA without tax being paid on any interest or gains.
Who is eligible for a Junior ISA?
All children under the age of 18 that did not qualify for a CTF can open a new Junior ISA and savers with an existing CTF can now transfer this to a Junior ISA.
Do I need to transfer my CTF to a Junior ISA?
No, you do not have to, but you are free to transfer your CTF investments to a Junior ISA.
How will this change impact my existing CTF?
Existing CTFs remain unaffected and you can continue to save as usual if you choose not to transfer to a Junior ISA. If you do decide to transfer, please be aware that the BMO FTSE All-Share Tracker Fund will no longer be available to our stakeholder customers as this fund is not available within the BMO Junior ISA.
What’s the difference between the BMO CTF and a BMO Junior ISA?
Can I invest in both?
No, you can’t hold both accounts for the same child.
Can I access the money paid into a Junior ISA?
No, the account is set up for the child. As with the CTF, only they can access the money and only after they turn 18.
What happens when my child reaches age 18?
The Junior ISA and CTF both transfer into an adult ISA in the child’s name, so they can keep saving if they wish.
If I transfer, will I lose my initial government CTF voucher?
No you will be able to transfer the total amount in your CTF account to a Junior ISA.
*Charges do not apply to the reinvestment of dividends and/or monthly instalments
**Whilst it’s possible to switch existing shares in the cash Deposit account, it’s not an investment option for new subscriptions.