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Hot Topic – Junior ISA

Hot Topic – Junior ISA

Hot TopicIn the CII J10 manual (and of course in R02 and other investment exams too) it talks about Junior ISAs. It says that having a Junior ISA will not affect entitlement to an adult ISA. So, in other words, it will be possible for a 16-year-old to have an existing Junior ISA and to open an adult cash ISA too enabling them to maximise contributions into both (if they have the cash!).

This struck me as a little unfair on the poor kids stuck with Child Trust Funds. They can’t have a new swanky JISA (because they have a CTF) – and they can’t as yet transfer their old CTF into one either – although I can’t see any reason why they shouldn’t be able to do this, so am hoping that might change (yes I have a child born between September 2002 and January 2011 so he has a CTF started off with the £250 Gordon Brown generously gave me … hence my irritation!)

Anyway, as ever I would be keen to hear your thoughts on this. I am not expecting my progeny, at 16, to be able to max out both investments but I would like, at the very least, to be able to transfer his old CTF into a lower cost JISA.

And, if you are doing an investment exam this year – be careful of the question I saw recently which tested that we knew that a 16-year-old could have a JISA and a cash ISA at age 16.