Junior Individual Savings Account

1. Junior Cash ISA – A Cash JISA is like a bank or building society savings account, but neither you nor your child will pay tax on any interest they earn on their savings. Unlike a regular savings account, you cannot withdraw money from a Junior Cash ISA and the child will only be able to access the money held in a Junior Cash ISA when they turn 18.

2. Junior Stocks and Shares ISA – Contributions made on behalf of your child into a Stocks and Shares JISA can be used to invest and aren't subject to tax on any capital growth, interest or dividends received, and so can potentially offer better returns than Cash ISAs. With a Wombat JISA, you can invest in stocks and ETFs in a tax-efficient wrapper for your child (which they can only access at 18). However, remember when investing your capital is at risk and you may get back less than what you put in. 

Your child can have either type, or both types of JISA, but only a maximum of one of each and their £9,000 tax-free allowance is shared across both accounts. 

There also used to be a third type, called a Child Trust Fund (CTF). CTFs are no longer available for creation, though if you already have a CTF for your child, you can keep paying into it, or convert it into a JISA. You can easily transfer an existing JISA or CTF to Wombat. Simply download the app available on the Play Store or the App Store and open a JISA to start the process.

Individual Savings Accounts (ISAs) aren’t just for grown-ups: kids can get in on the action too! Junior ISAs, or JISAs for short, are similar to normal ISAs, but you can start saving sooner.

A JISA is essentially a long-term, tax-efficient way to save up to £9,000 per year for each of your children, so long as they live in the UK and are under 18. With a Stocks & Shares JISA, you can invest up to £9,000 each tax year, and this isn't shared with your personal adult ISA allowance of £20,000. Once the child turns 18, the account matures into a Standard Stocks & Shares ISA which they can then access and manage.

A JISA is opened and managed by a parent or guardian (the Registered Contact) but only the child can access the money (when they turn 18). It cannot be withdrawn before this time (though you have a 30 day cooling off period to change your mind, during which time you can withdraw the funds if you decide it isn’t right for you).

There is a £1 per month fixed subscription fee covering all transaction and investing costs, and grants you access to our Themes and Stocks, daily trades, Round Ups, Auto Invest, and Learning Hub. 

There is also an annual platform fee of 0.10% of your portfolio value, e.g. £9 per £9,000 per year, which is charged monthly (so in this example, a fee of £9 per year would be charged as £0.75 per month). 

You can view the fees you will pay per month for your Standard accounts by opening the Wombat app >” Account” >” Fees & Charges”. These low fees make Wombat one of the cheapest providers out there!

A 0.75% FX fee will be applied to trades on foreign shares only. An ETF provider fee between 0.07% and 0.75%(depending on the fund) will be charged annually. This is charged by the ETF provider and isn’t deducted from your account but is instead reflected in the value of your fund. 

View our pricing here.

• Tax-free gains – The main benefit of a Junior Investment ISA is undoubtedly the tax-free shelter it provides. Long term capital growth could see the money invested into Junior Investment ISA appreciate over the lifetime of the account which can run to 18 years, without having to sacrifice any of these profits to tax. 
• Money when they need it most –  a JISA is specifically designed to allow Parents/Guardians to save money for a time in their children’s life when they may need a lump sum: perhaps to help towards university tuition fees; to fund driving lessons, the purchase of the car, or even help with the deposit of their first house. The funds invested grow inside the tax-free shelter and can’t be accessed until the child’s 18th birthday and remain beyond temptation until then.
• Potentially better returns – Wombat’s stocks and shares JISA provides more flexibility than its savings counterpart, and allows the funds to be invested per the guardian’s wishes. This means the funds invested in the JISA can be optimised for long-term capital growth, and aren’t capped at a very low savings percentage that you might usually see attached to a Cash JISA. Please remember, when investing your capital is at risk and you may get back less than what you put in.
• Automation - Our JISA will offer the same features as our Stocks and Shares ISA - the option to enable Fortnightly Round Ups, that round up the spare change from any purchases. Auto-investment features, so you can “set it and forget it”, with an automatic monthly payment and investment into the funds of your choice.
• Themes - Our investments are packaged as “Themes”, making it much easier to understand what you’re investing in. Forget the complicated stock names, and instead, invest in what you believe in. A greener future, the foods you love, the companies you believe in. All without the complicated lingo.
• 7 day support - Our customer support team are here to help - always! We’re here 7 days a week, and even on Christmas. You can have peace of mind knowing that if you ever need help, we’re just an email away.

Transferring to a Wombat JISA is completely free. However, please check if your current provider charges fees.

If you already have a Wombat account:

Open the Wombat app and tap the name of your existing account in the top left of the home screen. Tap ‘Create new account’ and then choose 'Junior Individual Savings Account (JISA)' from the account selection carousel to begin creating the account. You will need to select ‘Yes’ when asked if you would like to transfer an existing JISA or Child Trust Fund, specify which, and then tap ‘Continue.’ Complete the details for your child, and then complete the transfer form which has been emailed to the email address you entered when you registered, and we will email you once the transfer is complete.

If you don’t currently hold an account with Wombat:

To transfer your current JISA or Child Trust Fund to a Wombat Stocks & Shares JISA, please download the Wombat app, available on the Play Store (for Android devices) or the App Store (for iOS devices). Once you’ve installed the app, enter your registration details, and then after you have successfully registered you will be presented with the account selection screen. Simply choose 'Junior Individual Savings Account (JISA)' from the account selection carousel to begin creating the account. You will need to select ‘Yes’ when asked if you would like to transfer an existing JISA or Child Trust Fund, specify which, and then tap ‘Continue.’ Complete the details for your child, and then complete the transfer form which has been emailed to the email address you entered when you registered, and we will email you once the transfer is complete.

Opening a JISA investment account with Wombat is quick and easy. You’ll need to download the Wombat app, available on the Play Store (for Android devices) or the App Store (for iOS devices). Once you’ve installed the app, enter your details to register for a Wombat account, and then after you have successfully registered you will be presented with the account selection screen. Read the information on each account type, and then simply tap on the account you want to open to start the ID verification process.

Any child who is resident within the UK and under the age of 16 can hold a Junior ISA Account. You must be over 18 and hold legal parental responsibility over the child in order to open an account for them.

If you already have a Standard ISA or GIA, or an Instant GIA, and would like to open a JISA as an additional account, open the Wombat app and tap the name of your existing account in the top left of the home screen. Then tap “Create new account” and use the account selection screen to open a JISA.