0800 526 249
Junior ISA
From just £10 per month, you can save for your child’s future with a plan you can count on. When you invest, your capital is at risk.
Total reviews
2514
Average rating
4.66
left to use your 2020/21 Junior ISA allowance
We make it easy to help them get set up for life
Easy to set up and manage
Open a plan online in minutes. Pause, top up or change your payments at any time by going online or with our help.
Option to invest sustainably
You could opt to invest into a sustainable fund with your Junior ISA, and help make the world a better place.
Brighten their future
When your child turns 18, taking over the savings in this fund will be an extra-special birthday present.
What is a Junior ISA?
Our Junior ISA enables you to save tax-free towards a lump sum for your child when they turn 18, and offers a choice of two funds including a sustainable option.
- Both funds aim for higher returns than you’d get with a cash ISA or bank account, by paying annual bonuses
- Deposit from just £10 per month or make a one-off payment of as little as £100
- Friends and family members can pay in, too
Thanks to smart investment decisions by the fund managers, our Junior ISA has been able to pay a bonus every year for the last 10 years.
However, the value of investments can fall, so you may get back less than you invest.
Small, simple steps that make a big difference to their future
Open your Junior ISA online
You’ll be done in the time it takes to make a cup of tea.
Login & manage your account
Access your secure online account 24/7.
Help grow their savings
Top up at any time. Friends and family can contribute, too!
18th birthday surprise
The big day arrives – present them with a tax-free cash gift.
Because everyone can benefit
As a mutual, we’re built on fairness. We can pay more profits to our members because we’re owned by them, rather than shareholders. It also means you’ll have a say in how we’re run. So when you open a Shepherds Friendly Junior ISA, you’re not only helping to secure your child’s future but you’re helping to define ours.
Our members love that we do things the right way
Nine out of 10 members would recommend our responsible investing to a friend.
Helping our members benefit for almost 200 years
The world’s changed a lot since 1826, but our idea of fairness remains the same.
When you’re member-owned, it matters more
We take the financial future of every member personally, because you’re one of us.
How we manage your savings
Nothing matters more than your child’s future, so we invest carefully and wisely on your behalf.
How we invest
Our Junior ISA invests your savings in a with-profits fund, which aims to offer a smoother way to invest. When their Junior ISA matures on their 18th birthday, we guarantee that your child will receive all the money paid into the plan, plus as any bonuses.
Unlike with an index-linked fund, a with-profits fund offers a more predictable investment journey by actively ‘smoothing out’ the daily ups and downs of the market. In years when investments perform well, some of the profits are retained. This means that when market conditions aren’t as good, then we can still aim to pay an annual bonus.
Our goal is to provide you with higher returns in the medium- to long-term, compared with what you’d get from a bank or building society account. So you should aim to invest for no fewer than five years.
However, in some circumstances, a market value reduction (MVR) could mean you get back less than you paid in, so the amount you receive can’t be guaranteed. If you transfer the money to another provider before the maturity date, or leave the money invested for more than three months after the maturity date:
- following periods of strong investment performance, you might get a final bonus
- or, following periods of poor investment performance, you may get back less than the current value of your plan.
Where we invest
Our Junior ISA offers the choice of two funds, both actively managed by Royal London Asset Management (RLAM). They describe their overall investment approach as ‘responsible’, with the simple belief that the good management of members’ investments will benefit investors, companies, and the economy as a whole.
Your savings will be invested across stocks and shares, equities, bonds, and property. This spread means you’ll benefit from a medium- to low-risk investment strategy, where the goal is to achieve greater growth than you’d get from a cash savings account.
Option 1: a fund that’s spread across a broad range of investments
Your savings will go into the Multi-Asset Strategies Fund (MAST), managed by Royal London. Your money will be invested responsibly, screening out or limiting investments which may be considered harmful and looking to incorporate some sustainable investments.
Option 2: a fund that only invests in sustainable companies
You can also choose to invest sustainably: your money will go into the Sustainable Diversified Trust Fund (SDTF), which carries a 5/5 sustainability rating from Morningstar. This is also managed by RLAM, and they’ll only invest your savings in companies that make a positive contribution to the environment and society as a whole.
The annual management charge for both of these funds is 1.5%, deducted before your annual bonus is paid.
Of course, no investment is free from risk. The way these funds are managed means that your investment is at a medium to low level of risk. This may appeal to you if you prefer a smoother investment journey.
How we’re regulated
Shepherds Friendly is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Registration Number is 109997.
Why we’re trusted
We believe in keeping things simple, and putting our members first. That’s why we’re highly rated on independent review platforms, with over 2,750 reviews across REVIEWS.io and Trustpilot.
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How we invest
Our Junior ISA invests your savings in a with-profits fund, which aims to offer a smoother way to invest. When their Junior ISA matures on their 18th birthday, we guarantee that your child will receive all the money paid into the plan, plus as any bonuses.
Unlike with an index-linked fund, a with-profits fund offers a more predictable investment journey by actively ‘smoothing out’ the daily ups and downs of the market. In years when investments perform well, some of the profits are retained. This means that when market conditions aren’t as good, then we can still aim to pay an annual bonus.
Our goal is to provide you with higher returns in the medium- to long-term, compared with what you’d get from a bank or building society account. So you should aim to invest for no fewer than five years.
However, in some circumstances, a market value reduction (MVR) could mean you get back less than you paid in, so the amount you receive can’t be guaranteed. If you transfer the money to another provider before the maturity date, or leave the money invested for more than three months after the maturity date:
- following periods of strong investment performance, you might get a final bonus
- or, following periods of poor investment performance, you may get back less than the current value of your plan.
-
Where we invest
Our Junior ISA offers the choice of two funds, both actively managed by Royal London Asset Management (RLAM). They describe their overall investment approach as ‘responsible’, with the simple belief that the good management of members’ investments will benefit investors, companies, and the economy as a whole.
Your savings will be invested across stocks and shares, equities, bonds, and property. This spread means you’ll benefit from a medium- to low-risk investment strategy, where the goal is to achieve greater growth than you’d get from a cash savings account.
Option 1: a fund that’s spread across a broad range of investments
Your savings will go into the Multi-Asset Strategies Fund (MAST), managed by Royal London. Your money will be invested responsibly, screening out or limiting investments which may be considered harmful and looking to incorporate some sustainable investments.
Option 2: a fund that only invests in sustainable companies
You can also choose to invest sustainably: your money will go into the Sustainable Diversified Trust Fund (SDTF), which carries a 5/5 sustainability rating from Morningstar. This is also managed by RLAM, and they’ll only invest your savings in companies that make a positive contribution to the environment and society as a whole.
The annual management charge for both of these funds is 1.5%, deducted before your annual bonus is paid.
Of course, no investment is free from risk. The way these funds are managed means that your investment is at a medium to low level of risk. This may appeal to you if you prefer a smoother investment journey.
-
How we’re regulated
Shepherds Friendly is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Registration Number is 109997.
-
Why we’re trusted
We believe in keeping things simple, and putting our members first. That’s why we’re highly rated on independent review platforms, with over 2,750 reviews across REVIEWS.io and Trustpilot.
Please keep in mind that when you take out an investment product with us your capital is at risk and you may get back less than you have put in.
Open a Junior ISA and get a free shopping voucher
When you make your first payment into a Junior ISA or Sustainable Junior ISA, we’ll send you a Love2shop voucher code worth up to £50. See our terms and conditions.
Ready to start saving for their future?
It’s important to know what you’re signing up for, so the downloads below explain all about our Junior ISA. Remember that when you invest, your capital is at risk.
Frequently asked questions
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What is a Junior ISA?
A Junior ISA (JISA) is a tax-efficient savings account which enables the child to access the money as soon as they turn 18. It means you can save for their future without paying income tax or capital gains tax on the returns. To be eligible for a Junior ISA, your child must be a UK resident and aged under 18.
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Who can open a Junior ISA?
A Junior ISA can only be opened by the child’s parent or guardian. However, friends and family can make contributions up to the overall annual investment limit of £9,000. Only the named parent or guardian can make decisions about the plan.
A child can only have one stocks and shares Junior ISA, but they can also hold a cash Junior ISA. However, they can’t hold a Junior ISA as well as a Child Trust Fund – although a Child Trust Fund can be transferred into a Junior ISA.
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What can your child do when they turn 18?
Your child can access the money and decide what to do with it. They could transfer it automatically to an adult ISA and keep saving, or withdraw some or all of the money. They could use it to pay for things like university, a home deposit, or a car.
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Can you make withdrawals from a Junior ISA?
No. Withdrawals cannot be made until your child turns 18.
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What is the Junior ISA allowance?
This is the maximum total amount that can be deposited into a Junior ISA in each tax year (6 April to 5 April). For the current tax year, the Junior ISA allowance is £9,000, but tax rules may change in the future.
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Can I transfer an existing Junior ISA?
Absolutely. If your child already has a Child Trust Fund or a Junior ISA (cash or stocks and shares), it’s easy to transfer it to a Shepherds Friendly Junior ISA. Only the named parent or guardian can do this.
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What’s the benefit of investing sustainably?
If you choose our Sustainable Junior ISA, you’ll be helping the make the world a better place for your child to grow up in. Find out more about our sustainable investing.
Our Member Services Team are always happy to help.
You can call them on 0800 526 249.
Important things to consider
- Past performance cannot be taken as a guarantee of future returns.
- The value of the JISA depends on the future performance of the investments held in the fund and the bonuses we distribute from any profits arising from these investments.
- HM Revenue and Customs may change the tax status of a Junior ISA in the future.
- Inflation may affect the purchasing value of the investment in the future.
- The money invested into a Junior ISA cannot be withdrawn early; it can only be withdrawn by the child when they reach the age of 18 years old.
- If you transfer the plan to another provider, or if you leave the money invested for more than three months after the child’s 18th birthday, then we will calculate the value of the investments that you hold within the With–Profits Fund to ensure that you leave with your fair share. If you have been invested through periods of poor investment performance, you may get back less than the current value of your plan. This is known as a Market Value Reduction (MVR).
When you take out an investment product with us your capital is at risk and you may get back less than you have put in. All references to taxation are to UK taxation and are based on Shepherds Friendly Society’s understanding of current legislation and H M Revenue and Customs practice which may change in the future. Investment growth is by means of bonuses, the amount of which cannot be guaranteed throughout the term of the contract. Please ensure that you read the full terms and conditions of this plan which are available from your financial adviser or by contacting us directly.
Please note: No advice has been given by Shepherds Friendly, and if you are in any doubt as to whether a savings plan is suited to your needs, then you should contact a financial adviser. There may be a charge for financial advice, and the cost should be confirmed to you before any advice is given.