NS&I’s new Junior ISA will be offering 2.00% tax-free/AER interest rate
- The account can be opened and managed online-only at nsandi.com
A new cash Junior ISA has been launched today and is available online only at nsandi.com.
The account, available from today, will offer a 2.00% tax-free/AER (variable) interest rate and has a maximum subscription limit of £4,128 for 2017/18.
The Junior ISA comes with 100% capital security guarantee as NS&I is backed by HM Treasury.
Junior ISA key features
- The account can be opened and managed online-only at nsandi.com.
All deposits will be electronic and communications will be paperless (a channel preference of email or text message for notifications are to be defined by the customer).
- Interest rate at 2.00% tax-free/AER (variable)
- Minimum deposit: £1
- Subscription limit for this tax-year (2017/2018): £4,128
- Anyone can make a deposit into the child’s account, not just parents, but the account must be opened and managed by a person with legal responsibility for the child, until the child reaches the age of 16.
- At 16, the child may apply to take control of the Junior ISA.
- At age 16 and 17, the customer 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 will accept transfers in for both Child Trust Funds and other Junior ISAs (cash and stocks and shares), and will allow transfers out to other providers’ Junior ISA products.
NS&I Acting Retail Director, Jill Waters, said:
“More money is now deposited with NS&I online than any other individual sales channel and our Junior ISA offers parents a simple and modern account for their children’s savings. This tax-free account will allow £4,128 to be invested, over this tax year for children aged under 18 with NS&I’s 100% capital guarantee.
“Our new Junior ISA will also allow third-parties to deposit in to the product electronically, which means that grandparents and other relatives and friends of the child or family can add additional funds once the account has been opened.”
NS&I is committed to modernising our offer to customers and our decision to offer our new Junior ISA online-only reflects the popularity of customers purchasing our products at nsandi.com.
We recognise, however, that some customers will not be able to invest online due to exceptional circumstances. Customers who consider themselves unable to invest online should call us on 08085 007 007, so we can discuss the options with them. Our call centre staff have been trained to offer support to these customers. Calls from the UK are free and our call centre is open 24/7.
After reviewing the accounts and investments we offer for children under 16, Children’s Bonds will be closing to new sales from September 2017. Any existing customers holding Children’s Bonds will be able to keep the product until their current term matures. We will be writing to customers whose Bonds are approaching maturity to explain what their options are. Customers can also purchase the new Junior ISA online only at nsandi.com.
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.
- 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.