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Junior ISA - Frequently asked questions

Here we seek to address some frequently asked questions about the Vantage Stocks & Shares Junior ISA.

If you're unable to find what you're looking for, please do not hesitate to phone us on 0117 900 9000 or email us.

N.B. Investments go down as well as up so there is always a danger you could make a loss. Nothing here is personalised advice, if unsure you should seek advice.

Applying

  • What is the 2016/17 Junior ISA allowance?

    You can contribute up to £4,080 per child this tax year. A tax year runs from 6 April one year to 5 April the next. Like an adult ISA, this allowance will increase with inflation each year.

    Like adult ISAs, there are two types of Junior ISA:

    • Cash Junior ISAs
    • Stocks & Shares Junior ISAs

    You can open a Cash Junior ISA and a Stocks & Shares Junior ISA for a child provided you do not subscribe more than the annual contribution limit.

    Children will only be able to hold one Cash Junior ISA and one Stocks & Shares Junior ISA at any time.

    Hargreaves Lansdown offers the Vantage Stocks & Shares Junior ISA, we do not offer a Cash Junior ISA.

    Please note that investments in a Stocks & Shares Junior ISA can fall in value as well as rise, and you could get back less than you invest.

  • How do I qualify for a Pedro the Penguin money box?

    We are offering a FREE Pedro the Penguin money box for each Vantage Junior ISA opened (either with a contribution or by transferring). The minimum contribution required to be included in the offer is just £1.

  • Can I invest on a monthly basis in a Junior ISA?

    Yes, you can set up a Direct Debit to invest into FTSE 350 shares, selected investment trusts and funds on a monthly basis.

    It's possible to set up the instruction online or by sending us an application form. The minimum monthly amount to set up regular savings is £25 per investment per month.

    Payment will leave your bank account on the 7th of each month (or the next working day if the 7th is not a working day) and investments are made on the 10th (or the next working day if the 10th is not a working day).

  • Who can open a Junior ISA?

    A parent or legal guardian can open a Junior ISA for an eligible child.

    The person who opens the Junior ISA will be the registered contact on the account and will be responsible for making the investment decisions and managing the account.

    Although the Junior ISA has to be opened by a parent or legal guardian, anyone can make a subscription up to the annual limit e.g. parents, grandparents, friends and relatives.

  • What is the minimum I can invest in the Vantage Junior ISA?

    The minimum lump sum investment is £100. If you invest more than this your subscription can be split between several investments subject to a minimum of £100 per fund.

    Monthly savings can be set up from as little as £25 per investment per month.

  • Who is eligible for a Junior ISA?

    Any child resident in the UK who wasn't eligible for a Child Trust Fund (CTF):

    • Children born on or after 3 January 2011
    • Children (aged under 18) born on or before 31 August 2002
    • Children born on or between 1 September 2002 and 2 January 2011 who didn't qualify for a Child Trust Fund. Note that most children born between these dates did qualify for a CTF.

    Where a child has a CTF, this can now be transferred to a Junior ISA. Once the transfer of the CTF is complete further contributions can be made to the Junior ISA.

Managing

  • Who can pay into a Junior ISA?

    Although the Junior ISA has to be opened by a parent or legal guardian, anyone can make a subscription up to the annual limit e.g. parents, grandparents, friends and relatives.

    Please note: Hargreaves Lansdown will not obtain consent from the registered contact before accepting subscriptions to a Junior ISA. Payments will remain as cash in the account pending an investment instruction from the registered contact.

  • Can any withdrawals be made from the Junior ISA?

    Only the child can withdraw cash from the Junior ISA when they reach age 18, except in cases of terminal illness or death.

  • Who can give instructions to buy or sell investments in a Junior ISA?

    The parent or guardian who is the registered contact on the account is responsible for making the investment decisions and managing the account. Although anyone can add money to a child's Junior ISA, we can only accept instructions to buy or sell investments from the registered contact.

  • What happens when the child turns 18?

    When the child reaches age 18 their Vantage Junior ISA will be converted into a Vantage Stocks & Shares ISA.

    At age 18 the child is entitled to full access to their investments and savings and can withdraw their capital if they wish to.

  • What happens to any income from investments within the Vantage Junior ISA?

    A Vantage Junior ISA can be set up to treat income in one of two ways:

    Reinvestment: Income will be held within your account and accumulated until it reaches or exceeds £10 per holding (or your chosen minimum), when it will be automatically reinvested. We will do this between the 11th and 21st of each month (or as soon as practicable thereafter). A dealing commission of 1% will apply (£1 minimum, £10 maximum).

    Deposit: Income will be held in the Junior ISA pending further investment instructions.

    The instruction you give will apply to all income paying holdings within the Vantage Junior ISA.

  • How can I top up the Junior ISA?

    By post: complete a Vantage Junior Stocks & Shares ISA Top-up form and send it to us with a cheque made payable to HLAM Junior ISA Client A/C. A third party (such as a grandparent or relative) can also make a payment using this method. They will need to provide their full name, address and date of birth when making the payment and will not be able to provide investment instructions, unless a letter of instruction is countersigned by the registered contact.

    By phone: call our Account applications & top ups team to subscribe using a debit card (third parties will be unable to make investment instructions).

    Online: log-in to the account directly or follow this link.

Fees and charges

  • What is the Suggested Minimum Cash Balance?

    The Suggested Minimum Cash Balance is designed to give you an idea of the amount of cash you should hold to meet the next few months’ fees, and other outgoings. However, it is just a suggestion and you can ignore it (or amend it) if you wish.

    The Suggested Minimum Cash Balance provides a good guide to how much cash you could hold, but as the value of your holdings will rise and fall, so will your fees. You may wish to adjust the cash balance you hold if there is a significant change in the value of your holdings.

  • Where can I see the fees and charges that have been applied to my account?

    You can view the management fees and charges which have been applied to your account by logging in and going to the Account Administration section of each account you hold. You then simply need to click on the ‘view history of fees charged’ link.

  • How can I pay fees from outside my child's Junior ISA?

    If you choose not to hold cash within your account or do not wish to use cash from within a tax wrapper (Junior ISA) to pay fees, you can choose to add money to the Loyalty Bonus Account. We try to collect fees from cash on the Loyalty Bonus Account first and then from cash within the Junior ISA. Maintaining a sufficient cash balance on the Loyalty Bonus Account will avoid the need to sell any of your child’s holdings to pay fees.

    To add money to the Loyalty Bonus Account, please call our Client Accounts team on 0117 980 9801.

  • What is the annual management charge in the Vantage Junior ISA?

    The charge to hold funds is tiered within the Vantage Junior ISA:

    • 0.45% per annum on the first £250,000 of funds
    • 0.25% on the value of funds between £250,000 and £1m
    • 0.1% on the value of funds between £1m and £2m
    • No charge on the value of funds over £2m

    The annual charge to hold shares, bonds, Investment Trusts, ETFs or gilts in the Vantage Junior ISA is 0.45% (capped at £45 per annum).

    For further information please view the Junior ISA charges and interest rates page.

  • How do I pay my fees and charges?

    We collect fees and charges from available cash on your account. If there is no available cash within your account, we will try to collect fees from cash you hold in your Fund & Share Account.

    Our system will look to collect fees in this order:

    • Loyalty bonuses received on units purchased before 1 April 2014. If no loyalty bonuses then;
    • Cash in the account in which the fees were generated. If no cash on the account then;
    • Cash in your Fund & Share Account. If no cash in your Fund & Share Account then;
    • Sell holdings to cover fees from the account in which the fees were generated
  • How will you collect fees and charges if there is insufficient cash on my account?

    If there is insufficient cash on your account and in the Fund & Share Account to pay, we will sell sufficient holdings to cover the amount owed and restore the suggested minimum cash balance. There will be a charge of £1.50 per deal if an automatic sale is required.

  • When do you collect fees and charges?

    Management fees are charged on a monthly basis and are calculated based on the value of your holdings at the end of each month. They are collected in the next month.

  • Will you tell me before you sell my holdings?

    We provide a notification service to let you know if you have insufficient cash on your accounts to pay fees due and your investments are at risk of being sold. You will then be able to add money (allowances permitting), or sell holdings of your choice to raise money, and therefore avoid your investments being automatically sold. This is an opt-in service so please set an email alert now.

Transfers

  • Can I transfer my Junior ISA investments to another provider?

    Yes, the following charges will apply to cover the cost of the administration:.

    • If you transfer a Junior ISA as cash there is a £25 charge.
    • Shares sales are subject to our standard dealing charges.
    • If you transfer your holdings as stock the re-registration fee is £25 per holding.
    • If you close your account there is an additional £25 + VAT charge.

    For more information call our Helpdesk on 0117 900 9000.

  • Can I transfer Child Trust Funds to the Vantage Stocks & Shares Junior ISA?

    Yes. As of 6 April 2015, it is now possible to transfer a Child Trust Fund to the Vantage Junior Stocks & Shares ISA.

    You can request a free information pack to find out more.

  • Can I transfer a Junior ISA held with another provider to the Vantage Stocks & Shares Junior ISA?

    Yes, it’s possible to transfer Junior ISAs between providers. Junior ISAs can be transferred in whole or, where you current provider allows it, in part. It is also possible to transfer a Junior Cash ISA into a Junior Stocks & Shares ISA, and vice versa. Current years' Junior ISA subscriptions must be transferred in full.

    As it is only possible to hold one Junior ISA of each type, if a transfer is being made to the same type of Junior ISA it would need to be transferred in its entirety. If a transfer is being made to a different type of Junior ISA, a partial transfer can be made. So, if transferring from a Stocks & Shares Junior ISA to another Stocks & Shares Junior ISA, the whole ISA must be transferred, as it is not possible to have two different Stocks & Shares Junior ISAs.

    If transferring from a Stocks & Shares Junior ISA to a Cash Junior ISA, a partial transfer can be made as a child is allowed one Stocks & Shares Junior ISA and one Cash Junior ISA.

Bed & Junior ISA/Junior SIPP

  • Is it possible to place a Bed & Junior ISA/Junior SIPP instruction?

    Yes. Our Bed & Junior ISA and Bed & Junior SIPP service allows the sale of investments from the registered contact’s Vantage Fund & Share account or from the child’s Designated Account free of charge, using the proceeds to open, or top up, a Junior ISA or Junior SIPP (subject to the child’s allowances). The same or a different investment can then be immediately bought back in the Junior ISA/SIPP, or the proceeds can be held as cash.

    If the Bed & Junior ISA or Bed & Junior SIPP service is being used to top up an existing account please send a written letter of instruction signed by the registered contact (and by the current holder of the investments, if different) to:

    Hargreaves Lansdown
    1 College Square South
    Anchor Road
    Bristol
    BS1 5HL

    If the Bed & Junior ISA or Bed & Junior SIPP service is being used to open a Junior ISA or Junior SIPP account, or the account is already open but no subscription/contribution has been made in the current or previous tax year, please also include a completed application form.

  • How much does a Bed & Junior ISA/Junior SIPP cost?

    It's free to sell the investments. The only cost (for shares; free for funds) is our standard postal dealing charge of 1% of the value of any share repurchase, subject to a minimum charge of £20 and a maximum charge of £50 (plus stamp duty if applicable).

    If shares of a value less than £500 are sold and the proceeds are not used to re-purchase the same shares within the Junior ISA/Junior SIPP, we reserve the right to charge £5 commission. When buying the same shares back there will be a small difference in price due to the bid offer spread. Therefore, together with the commission and stamp duty this means you will not buy back the same number of shares as you sold.

  • How long does it take to process a Bed & Junior ISA/Junior SIPP?

    We aim to carry out Bed & Junior ISA/Junior SIPP instructions as soon as possible. Normally this will be the same day we receive the instruction. However, when dealing volumes are unusually high there may be a delay. The first deal will always be placed within four working days of receipt.

    'Placed' for shares means the instruction will be dealt at the live market price and for funds, the instruction is passed to the fund manager to be dealt at the fund's next valuation point.

  • Will you buy back the same number of shares or fund units?

    No. When selling and buying shares or funds there will normally be a difference in price due to the bid-offer spread, and/or the price moving on your fund. Together with dealing commission and stamp duty (where applicable), this means we will not buy back exactly the same number of shares or units as we sell.

    We always endeavour to minimise the bid-offer spread on Bed & Junior ISA/Junior SIPP share trades and we will buy back the shares immediately after they have been sold.