-

Junior Cash ISA


At a glance

  • Earn a variable rate of 3.00% tax free/AER on amounts from £1
  • The Junior Cash ISA is for children under 18
  • Save up to £4,080 in this tax year (or less if you have also invested in a junior stocks and shares ISA)
  • Apply online today and manage the account in any branch
  • The full balance of a Child Trust Fund can be transferred into a Junior Cash ISA but you cannot hold both at the same time. Please visit your local branch to complete the transfer
  • No withdrawals can be made until the child is 18, when the account matures into an adult cash ISA

About the Junior Cash ISA

The Junior Cash ISA is a simple way to build savings that will come of age with your child. Open one with just £1 and because it's an ISA your child won't pay any tax on the interest they earn.

Interest rates are variable. These interest rates are correct as at 13 February 2012.

Balances Tax free/AER%AER stands for Annual Equivalent Rate. It illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different savings accounts.  
£1+ 3.00

How the Junior ISA works

  • Junior Cash ISAs are for children under 18
  • A child with a Child Trust Fund must transfer this into a Junior Cash ISA when the account is opened. To do this please visit your local branch. For more information regarding Child Trust Fund and Junior Cash ISAs visit gov.uk and The Money Advice Service.
  • The tax efficient savings limit for Junior ISAs is £4,080, the same as for existing Child Trust Funds.
  • You can save up to £4,080 tax-free for your child during this tax year. If you also have a junior stocks and shares ISA, the allowance will be less depending on how much you have invested in that.
  • Anyone can deposit money until the allowance is reached. Deposits will be treated as a gift to the child, and can’t be returned to the giver even when the account matures.
  • When the child reaches 18, the account will mature into an adult cash ISA. They can then either withdraw the money, transfer it to a new ISA or close the account.
  • No withdrawals can be made until the child is 18, except in exceptional circumstances, for example the child becoming terminally ill or dying.
  • If the child is under 16, the account must be opened in their name by a person over 16 who has parental responsibility for them. If they are 16 or 17, the account must be opened in their name only.
  • Between 16 and 18, a child can hold both a Junior ISA and an adult ISA at the same time. Separate limits will apply. When the child reaches 18, their Junior ISA will convert to an adult ISA, and a single adult limit will apply to all their ISA savings.
  • There are two types of Junior ISA – Junior Cash ISA and Junior Stocks and Shares ISA. Only the Junior Cash ISA is currently offered by Lloyds Bank. Your child can hold one of each type – ie they can’t have multiple Junior cash ISAs or stocks and shares ISAs with different providers. However, they can transfer money between different Junior ISAs, and move their existing ISAs between different providers.

Account name
Junior Cash ISA
Interest rates (AERs) Interest rates are variable. Interest will be paid annually.

Junior Cash ISA interest rates.
Tax status Interest will be paid tax free.
The favourable tax treatment for ISAs depends on the child's circumstances and may change.
Conditions for bonus payments
Not applicable
Withdrawal arrangements No withdrawals can be made until the account matures when the child is 18.
Then the account becomes an adult cash ISA in the child's name and control. All funds belong to the child.
Access In branch

 

Apply Online today

You can apply online if you are 16 or over and have parental responsibility or between 16 and 17 years of age and are a resident in the UK for tax purposes. If you have a Child Trust Fund please visit your local branch.

Apply in branch

Make an appointment at your local branch with proof of identity for you and the child and we'll open the account for you.

What proof of identity can I use?

You'll need your child's passport or birth certificate, as well as identification for yourself.

Junior Cash ISA terms and conditions

1.  What terms make up this agreement?
This agreement is made up of these terms and those set out in the:


If there’s any conflict between any of the terms below and those referred to above, the terms below will apply.

2.  What is a Junior Cash ISA Account?
It's a children's savings account with a variable interest rate and special tax treatment. The account is in the name of the child but must be opened and operated by a Registered Contact. We explain in these conditions who can be a Registered Contact. The account is a ‘restricted account’ for the purposes of making changes to these conditions or the account’s interest rate (see 14.10 of the Personal Banking Terms and Conditions).

3. Who is the agreement between?
The Registered Contact and Lloyds Bank plc, (referred to as 'we', 'us' or 'the bank' in these conditions). Lloyds Bank plc is registered as an ISA manager with HM Revenue & Customs (HMRC).

4. Who can hold a Junior Cash ISA account?
To hold a Junior Cash ISA a child must be under 18. When the application to open the account is made, the child must be either resident in the United Kingdom for tax purposes or a Crown employee serving overseas or married to, or in a civil partnership with, or a dependant of such a person. We are required to provide details of all junior ISA holders to HMRC.

A child that has a Child Trust Fund cannot hold a Junior ISA but it is possible to transfer a Child Trust Fund to a junior ISA.

5. Who owns the money in the Junior Cash ISA?
All money paid into the account belongs to the child. The money in the account cannot be used to pay other debts owed to us and the account cannot be transferred.

6. How many Junior Cash ISAs can a child have?
Only one. A child can hold a junior cash ISA and a junior stocks and shares ISA. From the age of 16 up to their 18th birthday a child can hold a cash ISA and a junior cash ISA and make payments into both accounts up to the relevant yearly allowances.

7. How much money can be paid into a Junior Cash ISA?
Payments into the account can only be made up to the yearly junior ISA allowance set by HMRC. To find out the latest allowance contact us or HMRC. A transfer from a Child Trust Fund to a junior ISA will not be treated as part of the yearly junior ISA allowance.

OPENING AND OPERATING A JUNIOR CASH ISA ACCOUNT

8. Where can I open a Junior Cash ISA Account?
In any Lloyds Bank branch or online.

9. Who can open a Junior Cash ISA?
If a child is under 16 a person who has parental responsibility for the child must open the account as the Registered Contact. The Registered Contact must be 16 or over when they apply to open an account. Between the ages of 16 and 18 a child can open the account themselves as Registered Contact.

10. When will the Junior Cash ISA be open?
The account will start from:

  • the date of the first deposit (which must be at least £1) providing we have a valid application form; or
  • if you are transferring a junior cash ISA from another provider, the day we receive the transferred funds. We will pay interest on transferred funds from the date we receive a completed transfer form, provided your funds are free to move.

11. Who will manage the Junior Cash ISA?
Where the Registered Contact has parental responsibility for the child they will manage the account until it matures when the child turns 18, unless the child tells us that they want to become the Registered Contact after they have turned 16. A child who opens an account as Registered Contact can manage the account themselves.

12. Can a child ask to take over managing the Junior Cash ISA themselves?
Yes. From the age of 16 the child can at any time contact one of our branches and ask to be made the Registered Contact for the account. They do not need the agreement of the existing Registered Contact. We will write to the Registered Contact before the child turns 16 to explain the steps the child will need to take to become the Registered Contact. This will include providing evidence of their identity and completing an application form.

13. Can anyone else take over the management of the Junior Cash ISA?
Yes. Where the existing Registered Contact agrees, another person with parental responsibility for the child can become the Registered Contact. We can also change the Registered Contact without consent where the existing Registered Contact has died or becomes incapacitated, no longer has parental responsibility for the child, can no longer be contacted or because of a court or equivalent order.

14. How can the Registered Contact manage the Junior Cash ISA?
Queries and instructions about the account can be made at any of our branches.

15. What information will be sent to the Registered Contact about the Junior Cash ISA?
We will send a statement each year showing transactions up to and including 5th April. Duplicate statements can be requested, there is no charge for these.

DEPOSITS, WITHDRAWALS AND TRANSFERS

16. Who can make payments into a Junior Cash ISA?
Anyone can make payments into the account up to the yearly junior ISA allowance. Payments made into a junior ISA are gifts to the child and cannot be returned, even when the account matures.

17. How can payments be made into a Junior Cash ISA?
Payments can be made into the account at any time by:

  • transferring the whole of a junior cash ISA account with us or with another junior ISA manager;
  • transferring the whole or part of  a stocks and shares junior ISA held with us  or with another junior ISA manager;
  • transferring all of the funds held in a Child Trust Fund or all of the proceeds from the sale of stocks and shares held in a Child Trust Fund;
  • paying money into the account at any branch; or
  • transferring money into the account from another account.

Regular monthly payments in can be made by standing order from an account which is held by us yearly or another bank or building society.

18. What happens if payments into the Junior Cash ISA exceed the yearly junior ISA allowance?
If payments in a particular tax year   reach the yearly allowance we will not accept any further payments during that tax year. Payments in excess of the yearly allowance will be refused if made in branch or returned using the same method by which they have been paid, for example, standing orders will be returned by electronic payment. The Registered Contact agrees in these circumstances to us explaining to anyone wishing to make a payment into the account that the allowance has been reached and further payments can’t be accepted.

19. Can payments into the account still be made if the child moves abroad?
Yes.

20. Can funds be transferred from another junior ISA with us or another provider into the Junior Cash ISA?
Yes, it’s possible to transfer:

  • the whole of the account balance (deposits and interest) of a junior cash ISA with us or with another ISA provider;
  • all of the payments made to the account (deposits and interest) during the current tax year, and the whole or part of the account balance (deposits and interest) from a previous tax year or years from a junior stocks and shares ISA with us or with another ISA provider.

We will pay interest on amounts transferred from the date we receive a completed application form, providing your funds are free to move.

21. Can funds be transferred from a Junior Cash ISA into another junior ISA with us or another provider?
Yes, it’s possible to transfer:

  • the whole of the account balance (deposits and interest) to a junior cash ISA with us or with another ISA  provider;
  • all of the payments made to the account (deposits and interest) during the current tax year, and the whole or part of the account balance (deposits and interest) from a previous tax year or years to a junior stocks and shares ISA with us or with another ISA provider. If all of the balance in a junior cash ISA is transferred into a junior stocks and shares ISA another junior cash ISA can be opened as long as payments in do not exceed the yearly allowance.

The Registered Contact must complete a transfer application with the new provider who will send the transfer application to us. Within 5 working days of receiving the transfer application from the new provider, we will send the child’s money and information to the new provider. It should take no more than 30 days to transfer the funds from a Child Trust Fund to a junior cash ISA.

22. Can funds be transferred to or from a Child Trust Fund or from an adult ISA?
It is possible to transfer all of the funds in a Child Trust Fund to a junior cash ISA. If the Child Trust Fund contains stocks and shares, these will have to be sold and the proceeds transferred. It is possible that you could lose out if there is a rise in the market while your transfer is going through, and we will not be liable for that loss.

The Registered Contact must complete a transfer form. It should take no more than 30 days to transfer the funds from a Child Trust Fund to a junior cash ISA.

Funds cannot be transferred from a junior cash ISA to a Child Trust Fund and cannot be transferred to or from an adult ISA.

23. Can funds be withdrawn from a Junior Cash ISA?
Other than transfers to another junior ISA, no withdrawals can be made from the account until the child is 18, except if they become terminally ill or die.

If the child becomes terminally ill and the Registered Contact wishes to withdraw funds from the account the Registered Contact must make an application to HMRC (further information can be obtained at www.hmrc.gov.uk). If the application is accepted HMRC will notify us and the Registered Contact. We may ask to see HMRC’s letter of consent before we allow any funds to be withdrawn. If the account is closed in these circumstances interest earned up to the date of closure will be paid tax free.

INTEREST

24.  How is interest paid?
We’ll pay interest once a year on 31 March or, if that is not a working day, the next working day. If there is less than £1 in the account we will not pay interest on the amount in the account until the balance is increased above the £1 limit.

25. How can I find out what the interest rate is?
You can find out by either asking in branch or by looking online at www.lloydsbank.com.

26. Do you take tax off the interest that you pay on the Junior Cash ISA?
As long as the child and the account continue to qualify, interest will be paid tax-free.

27. Can the interest rate change?
The account pays a variable rate of interest – this means that as long as we let you know we can change the rate of interest we pay on the money held in the account. For further details about how we do this, please read the Personal Banking Terms and Conditions.

28. What happens if the Government changes the ISA Regulations?
Any changes made to ISA Regulations that affect these conditions will apply as soon as they come into force. Favourable tax treatment for ISAs may not be maintained (the Government is responsible for decisions about tax treatment).

29. Can the Junior Cash ISA lose its tax free status?
Yes. The account will no longer qualify as a cash ISA, and we will deduct income tax from the interest earned:

  • if the declarations that were made when  the account was applied for are or become untrue;
  • from the date of the child’s death; or
  • if HMRC instruct us accordingly.

The account will not lose its tax free status if, after the account is opened, the child moves abroad.

We will notify the Registered Contact if the account becomes or will become subject to the deduction of tax. We will deduct income tax at the appropriate rate from the interest earned, including any interest already paid. We will take this amount from the money in the account before we pay the balance over to the child.

THE END OF A JUNIOR CASH ISA ACCOUNT

30. What happens when the child reaches 18?
The account will automatically become an instant access cash ISA (or another instant access account if this is no longer available). The child can withdraw matured funds from this account but will have to provide evidence of their identity in order to do so if they are not the Registered Contact when the account matures. We will write to the Registered Contact and the child (if different) before the child turns 18 with more details about the account that the Junior Cash ISA will mature into, how to withdraw funds or transfer them to another ISA provider and the steps the child needs to take to activate their cash ISA account.

New funds cannot be added to the cash ISA until the activation process has been completed. If when the child reaches 18 the Junior Cash ISA has no money in it we will close the account and not convert it to a cash ISA.  We will not give advance notice when we do this.

31. Can the Junior Cash ISA be closed before the child turns 18?
Other than when the funds are transferred to another junior ISA (see 21 above) or the child becomes terminally ill (see 23 above) or dies, the account cannot be closed.

If the child dies, the account balance will normally be paid to their estate. When we receive notice of the child’s death we will close the account and pay any interest earned up to the date of death tax free. We will transfer the balance to a standard instant access account and provide details of this new account to those people responsible for the child’s estate.

CANCELLATION

32. Can the account be cancelled?
Yes. The account can be cancelled at any time before the end of the 14-day period starting on the day the account is opened. If the account is cancelled payments can be made into another junior ISA in the child’s name and payments made to the cancelled account will not count towards the child’s yearly allowance. If the account is cancelled we will repay the balance (including any interest earned) to the Registered Contact, unless the junior ISA has been opened to receive a transfer from a Child Trust Fund in which case the balance and interest will either be returned to the Child Trust Fund (if that account has not already been closed) or transferred to another junior ISA. To cancel this agreement the Registered Contact should speak to one of our branches. There are no charges for cancelling a Junior Cash ISA and no advance notice is required.

Glossary

AER

AER stands for Annual Equivalent Rate. It illustrates what your interest rate would be if interest was paid and compounded each year and allows you to easily compare different savings accounts.

Net rate

Net rate is the rate of interest payable after allowing for the deduction of income tax at the rate specified by law (currently 20%).

Gross rate

Gross rate is the contractual rate of interest payable before the deduction of income tax at the rate specified by law (currently 20%).

Interest will only be paid gross on tax-free accounts or if you are registered with us as unlikely to pay tax on your savings income. You will need to register each account you hold separately which you can do by visiting your nearest branch or by ringing us on 0345 300 0000 or 01733 347007.

Tax free rate

Tax-free is the contractual rate of interest payable where interest is exempt from income tax.

Apply online today

You can apply for a Junior Cash ISA if you are:

 

  • 16 or over and have parental responsibility for a child under this age
     
    or

  • Between 16 and17 years of ages
     
    and

  • Resident in the UK for tax purposes

 

    Please note: You may be asked to visit a branch with identification documents and you can only manage the Junior Cash ISA in a branch. If you have a Child Trust Fund please visit your local branch in order to open the account.

      What proof of identity can I use?

      You can use the child’s birth certificate or passport to open the account. You’ll also need identification for yourself.

        How much could you save? Try our savings calculator

        Try the calculatorTry the calculator