Junior ISA’s allow under-18s to save up to £4,080 this tax year, which remains tax-free until their 18th birthday, at which point it is converted into an adult ISA (and remains tax free). Just like an adult ISA, there are two types of Junior ISA: 1) cash and 2) stocks and shares. As the names suggest, cash ISA’s are like a traditional savings account. The money is safe (up to the £75,000 per financial institution) and will increase in line with the advertised interest rate. Stocks and shares Junior ISAs on the other hand can go up and down depending on how the investment portfolio performs. Of course you do have the potential to make a substantially better return but you also risk losing money so its worth careful consideration. The current top Junior ISA rates available are:
Unless you live near a branch, you will need to open the accounty by post or on the phone. Interest is paid annually and you can access by post, phone or branch (although these are limited).
Although a lower rate than Coventry Building Society, the Nationwide account can be accessed online as well as in the nationwide (pun intended) branches. Again interest is paid annually.
Same interest rate as Nationwide, the Tesco Junior ISA can be accessed online or by phone. Interest is paid annually.