Definition of junior ISA

Junior ISAs (individual savings accounts) became available in November 2011. The key features include:

• Junior ISAs are available to those children who do not have a Child Trust Fund;

• All returns on these savings accounts will be tax-free and children will be able to have one cash and one stocks and shares Junior ISA at any time; and

• Annual contributions are capped at £3,840 between 6 April 2014 and 30 June 2014, increasing to £4,000 from 1 July 2014.

From April 2015 cash in a Child Trust Fund can be transferred to a Junior ISA.[1]

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