What is going to happen to my child's Junior ISA when they turn 18?
The Junior ISA will automatically move to an Adult ISA. Your child can simply leave their savings where they are and if they wish to add further contributions or access the money, your child can do this at any time. Your child will be able to instruct us whether they would like to continue to save, or if they would like to make an encashment from the Plan - or as mentioned above they can do both. Before we accept any contributions into their ISA after age 18 we need their instruction.
We will write to your child four weeks before they reach 18 to tell them they have a Junior ISA with us. We will also send the Registered Contact a final statement on their 18th birthday for their Junior ISA, showing the total value of the Plan.
We are not allowed to accept any further contributions into the Junior ISA once your child reaches age 18. If you have a MyPlans account, please note you will no longer be able to view their Plan online once they turn 18.
We know that some parents may have decided to keep this as a surprise for their child and have been saving over the years. Although this is a perfect gift, to help with university, towards a new car or even a new home, don’t let the surprise be spoilt by someone else – start talking to your child about their Junior ISA.
If your child’s Junior ISA was originally a Child Trust Fund, when HMRC provide your child with their National Insurance Number in the letter it will state:
“Child Trust Fund
When you turn 16, take control of your Child Trust Fund. Ask your parents or guardian, for more information go to www.gov.uk/child-trust-funds”
So your child may come to you with some questions about whether they have one, and then ask why they do not have one.
As more children start to receive their National Insurance Number letter, or see news and information available online about Child Trust Funds this could also ruin the surprise and even maybe cause a little confusion.
Your child will also have access to their member benefits, which they can access through their MyForesters account. Find out more here >