A Junior Individual Savings Account (JISA), allows you to invest up to the annual Junior ISA allowance each tax year.

CURRENT TAX YEAR’S ALLOWANCE: £9,000

There are some rules that you, the registered contact should be aware of before opening a Junior Stocks and Shares ISA.

• The child must be under 18 years of age
• You and the child must be a UK resident
• You cannot invest more than the allowance in any given tax year
• A child can only have one Junior ISA at a time. If you would like to transfer a Junior ISA to Chelsea please contact us on 020 7384 7300
• If the child was born between 2002 and 2011, they might have a Child Trust Fund (CTF). These can be transferred to a Junior ISA. Please note that a child cannot have both a CTF and a Junior ISA. If you would like to transfer a CTF to Chelsea, please contact us on 020 7384 7300
• When the child turns 16, they can manage the account, but cannot withdraw any money
• When the child turns 18, the account will roll over into an adult ISA and become legally theirs
• Only under special medical circumstances can you withdraw from a Junior ISA before the child turns 18.

• Tax-efficient way to invest for your child
• You can invest up to £9,000 per tax year
• Anyone, from parents, grandparents and friends can invest into a Junior ISA for the child
• You can invest as a lump sum. Login here, or download an application form here
• You can make regular savings throughout the tax year. This can be as little as £10 per month. Login here, or download an application form here

To give you an idea of how much could be saved on behalf of a child, a monthly contribution of £50, assuming 7% growth per annum after fees, could provide a pot of over £21,000 over 18 years**. A monthly contribution of £300 could grow to almost £130,000***.

* The cost of a child calculations, from birth to 21 years, were compiled by the Centre for Economics and Business Research (CEBR) for Liverpool Victoria in January 2014 and are based on the cost for the first 21 years of someone’s life, from food and clothing to hobbies and education.

**The Calculator Site, compound interest calculator, £50/mth, 18 years, 7% annual interest rate, compounded monthly

*** The Calculator Site, compound interest calculator, £300/mth, 18 years, 7% annual interest rate, compounded monthly

• Your money will be locked in – only in very specific circumstances can the money be withdrawn before the child turns 18
•  You cannot hold a joint Junior ISA
• You cannot carry forward unused allowances
• Charges on a Junior Stocks and Shares ISA tend to be higher than that of a Junior Cash ISA
• You will be invested in the stock market, so will be exposed to risk
• When the child turns 18, the Junior ISA will roll over into an adult ISA in their name. It is up to them what they do with this pot of money. If you are not comfortable with them accessing the money at 18, you may like to consider a Designated Investment Account.

In the UK alone, there are over 3,000 different funds to choose from, so choosing the right one can feel daunting.

At Chelsea, we have collated a number of different options:

The award-winning VT Chelsea Managed Funds – The VT Chelsea Managed funds offer a complete investment solution. You can choose from one of the four managed funds, based on your requirements and attitudes to risk. Find out more here.

Build a Portfolio – If you are interested in building your own portfolio, why not head over to our Research Hub or read our Build a Portfolio article. Alternatively, you can also use our Viewpoint or Fund Review to help you make an informed decision.

Once you know where you want to invest, there are a number of ways you can invest:

• Log in to your account and process your instructions yourself
• Call us on 020 7384 7300 and our helpful staff will assist you

Complete an application form and forward it to us at:

Chelsea Financial Services, St James Hall, Moore Park Road, London, SW6 2JS

Before investing, you should ensure that you have read the key investor documents of the fund(s) you want to invest in to, the pre-sale illustration(s) and the relevant terms and conditions. More details can be found on our dedicated disclosures page.