When you open a Shepherds Friendly Junior ISA for your child, your money will be invested in what is known as a Stocks and Shares Junior ISA. So this means that, instead of simply saving money in a normal savings account as with a Cash Junior ISA, your money is placed in a tax-efficient investment fund which is made up of a broad range of assets including unit trusts and other investments.

Stocks and Shares Junior ISAs offer the potential for higher returns than Cash Junior ISAs, particularly if you choose to invest for the long-term. However, you do need to know that, as the underlying value of your child’s investment is linked to the fluctuations of the stock market; although the value cannot fall there is no guarantee that bonuses will be added each year.

Our Junior ISA offers you tax-efficient saving for your child, free of UK income and capital gains tax and with the potential for a tax-free lump sum at age 18.

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Shepherds Friendly With-Profits Fund

When you invest in a Shepherds Friendly Junior ISA, your money is pooled along with that of other Shepherds Friendly plan holders into a single fund. This fund is then invested in a wide range of assets including company shares, property and bonds with a view to generating bonuses to return to our plan holders.

Because investment values can fluctuate year by year, we look to ensure that these fluctuations are evened out wherever possible by applying a process known as ‘Smoothing’.

Past performance of our Junior ISA

Our Junior ISA was launched in 2011, and below is a summary of how bonuses have performed since then:

Past performance of our JISA icon

The above bonus rate is the actual bonus received by your child’s Junior ISA, after the annual management charge has been deducted.

Please remember that past performance is not a guide to how your child’s Junior ISA will perform in the future, and although the value of your child’s Junior ISA cannot fall, in years when performance is particularly poor we may not pay a bonus.

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The benefits of Smoothing

While your Junior ISA is invested in the Shepherds Friendly With-Profits Fund, we apply a smoothing process which is intended to minimise the effect of any fluctuations in the stocks market during that period. For example, when investment conditions are good we may decide to hold on to some of the growth achieved in order to compensate for any period when conditions prove less favourable. The reason we do this is to give us the best possible chance of paying you an annual bonus, and to try to minimise the effects of poor market conditions on your investment.

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Risks associated with the Junior ISA

Inevitably there are risks associated with any stocks and shares investment, as these can rise and fall in line with the market’s performance during the investment period of your savings plan. It is important therefore to view your child’s Junior ISA as a medium to long-term investment opportunity designed to mature when your child reaches age 18. The smoothing process applied by Shepherds Friendly is designed to even out fluctuations wherever possible during the full period of your investment, making our Junior ISA a potentially sounder investment than some other stocks and shares Junior ISAs currently available.

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Bonuses applicable to your Junior ISA

The returns achieved by our With-Profits Fund are used to pay a yearly bonus to your plan, whenever possible. Once a yearly bonus has been added to your plan this cannot be taken away and will be included in the final pay when your child reaches 18 years of age.

At the end of your plan a further final bonus may be added, depending on the fund’s performance.

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How to open a Shepherds Friendly Junior ISA: You can open a plan online quickly and securely by clicking the button below:

If you would like assistance in applying or would like more information regarding the plan, you can find out more by viewing our 'What is a Junior ISA?' infographic. Alternatively, our friendly customer service team would be happy to explain anything in more detail or take you through the application process over the phone, just give us a call on 0800 526 249


  • 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 during the term of the plan, or if you leave the money invested for more than three months after the child's 18th birthday, then we may apply a market value reduction if investment returns have been poor. In this event your child could get back less than you have paid in. Your capital is at risk.

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. For our With Profits plans 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.