NS&I increases interest rate on its Junior ISA to 2.50% tax-free/AER
- The account can be opened and managed online-only at nsandi.com
The account available online only at nsandi.com has a maximum annual subscription limit of £4,128 for 2017/18, increasing to £4,260 for 2018/19.
The Junior ISA comes with 100% capital security guarantee as NS&I is backed by HM Treasury.
Junior ISA key features
- The account is opened and managed online-only at nsandi.com. All deposits are electronic and communications are paperless (customers can choose their preference of email or text message for notifications).
- Interest rate at 2.50% tax-free/AER (variable)
- Minimum deposit: £1
- Subscription limit for this tax-year (2017/2018) is £4,128, rising in 2018/19 to £4,260.
- Anyone can make a deposit into the child’s account, not just parents. However, someone with legal responsibility for the child must open and manage it until the child reaches the age of 16.
- At 16, the child may apply to take control of the Junior ISA.
- 16 and 17 year-olds can open and manage a Junior ISA themselves.
- As with all Junior ISAs, no withdrawals are permitted before the child is 18.
- NS&I’s Junior ISA accepts transfers in from both Child Trust Funds and other Junior ISAs (cash and stocks and shares), and allows transfers out to other providers’ Junior ISA products.
NS&I Retail Director, Jill Waters, said:
“NS&I is committed to engaging with young savers and giving parents and guardians a simple and straightforward way to invest for their children. We launched our Junior ISA in August last year and have today increased its interest rate to 2.50% to make it more competitive.
“As well as offering young savers and their families an improved interest rate, and the benefit of our 100% Treasury guarantee we are proud to offer our Junior ISA through nsandi.com which is simple and straightforward to use, and also cost-effective.”
Notes to editors
- NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments to 25 million customers. All products offer 100% capital security, because NS&I is backed by HM Treasury.
- Tax-free means the interest is exempt from UK Income Tax.
- AER (Annual Equivalent Rate) illustrates what the annual rate of interest would be if the interest was compounded each time it was paid. Where interest is paid annually, the quoted rate and the AER are the same.
- For further information, please contact the NS&I media team.