Junior Stocks & Shares ISA.

With the Halifax Junior Stocks & Shares ISA, you can invest tax efficiently for your child online. Building up their money over time could make it much easier for them to buy their first car, pay for university fees, or even put a deposit down on their first home.

We don’t offer any advice, so you’ll need to do your own research and make sure you’re happy that it’s right for you and your child.

  • Invest up to £4,080, less any amount already saved in a Junior Cash ISA, in the 2015/16 tax year.
  • Invest with a minimum lump sum of £20, a regular monthly payment of as little as £20, or both.
  • An Ongoing Charge of 0.5% of fund value per annum and a Service Fee to be introduced in the future.
  • Simple and easy to manage online.
  • Automatically becomes an adult Stocks and Shares ISA when the child reaches 18.

Understand the risks

Please remember that the value of an investment and the income from it can go down as well as up and you may get back less than you invested. If you are in any doubt about making your own investment decisions we recommend you seek advice from a suitably qualified financial adviser.

Who’s it for?

The Halifax Junior Stocks & Shares ISA is a way for parents or legal guardians to invest online and contribute tax efficiently for their children over the medium to long-term (at least 5 to 10 years). That means any increases in the value of your child’s investment are free from personal income tax and capital gains tax. Children aged 16 and 17 can open their own Junior Stocks & Shares ISA if they wish.

You can’t invest in our Junior Stocks & Shares ISA if your child has a Child Trust Fund. We don’t accept transfers from a Child Trust Fund. Please note that if a grandparent or other family member wants to contribute to the investment, they’ll need to do this via the parent or legal guardian who set the investment up.

Can I transfer it to another account later?
Once you pay money into the account, it’s held in the child’s name and their money is locked in until they turn 18, when the investment becomes an adult Stocks and Shares ISA and is handed over to them. You can transfer the Junior ISA to a Junior Cash ISA or Junior Stocks and Shares ISA with another provider at any time, but money can’t be moved to any other type of account.

Frequently asked questions

We’ll write to your child a few months before their 18th birthday to see what they want to do with their investment. If they want to keep the investment, it will be transferred into an adult Stocks & Shares ISA in their name. If they don’t, they can sell the units in the fund and then withdraw the cash.

Your child can take on the management of the Halifax Junior Stocks & Shares ISA at the age of 16 if they want to. Children who are 16 or 17 can also apply for our Junior Stocks & Shares ISA in their own right. They can have an adult Cash ISA as well as a Junior Stocks and Shares ISA, but can’t open an adult Stocks and Shares ISA until they are 18.

If you think your child has got a Child Trust Fund, there’s a handy form you can complete to find out which provider your child’s account is with on the gov.uk website.

Your child can have both types of Junior ISA, provided that you don’t exceed the annual Junior ISA allowance, which covers both cash and stocks and shares. For the 2015/16 tax year, this is £4,080.

The tax advantages of the Junior Stocks & Shares ISA depend on the child's individual circumstances and may change in the future.

What does it invest in?

The Halifax Junior Stocks and Shares ISA invests in the Scottish Widows UK Tracker Fund, which aims for long-term growth by tracking the performance of the UK FTSE100 Index by investing in the top 100 companies listed on the London Stock Exchange. This can help to spread your risk by investing in a variety of industries. Our Junior Stocks & Shares ISA is provided by Halifax Share Dealing Limited and the fund is managed by Scottish Widows Unit Trust Managers Limited.

This is a higher risk investment compared to some other funds as it only invests in shares, which tend to go up and down in value more often. This means that there’s a higher risk of loss, but also a higher potential for growth over the medium to long term.

The document below has lots more information about what the fund invests in, the risks, how it works, and how it’s performed in the past. But it’s important to remember that past performance is no guarantee of future performance.

Key Investor Information Document (PDF)

Frequently asked questions

You can sign in to the Halifax Share Dealing online service at any time to get a valuation of your child’s investment.

The FTSE100 is an index made up of the shares of the 100 largest companies listed on the London Stock Exchange.

Scottish Widows are part of the same group of companies as the Halifax. They’ve been providing financial services in the UK for over 200 years and are one of the most trusted brands in the pensions, insurance and investments industry (source: Scottish Widows, 2014).

The tax advantages of the Junior Stocks & Shares ISA depend on the child's individual circumstances and may change in the future.

What does it cost?

There are just two simple charges to pay; an ongoing charge that’s paid to the fund manager each year (this is a percentage of how much your investment is worth), and an account service fee. We’ll be introducing this monthly service fee later in the future, to cover the costs of our service. We’ll contact all our customers nearer the time to give them the details and this will include the offer of a free transfer to another provider.

Fund initial charges None
Fund exit charges None
Fund ongoing charge 0.5% of fund value each year
Service Fee To be introduced in the future

Frequently asked questions

One charge, called the ongoing charge, is paid to Scottish Widows to pay for the management of the fund you invest in; the other charge, called the account service fee, will be introduced in the future and will be paid to Halifax Share Dealing to look after the Junior ISA account.

There are no other fees or charges associated with the Junior ISA - there are no fees for transferring in from or out to another provider, or anything to pay for investing or moving cash into the account.

The ongoing charge will be deducted automatically from the underlying price of the fund by Scottish Widows. We’ll write to you with details of the account service fee and how this will be paid when it is introduced in the future.

The tax advantages of the Junior Stocks & Shares ISA depend on the child's individual circumstances and may change in the future.

Apply now

It’s really easy to apply for the Halifax Junior Stocks & Shares ISA – first we’ll ask you a few questions to check your understanding of how investments work and make sure you’re comfortable with investing. Then you can download and complete our application form. We’ll then send you a welcome letter with all your details, and once you send this back, we’ll set up your access to the online service.

There are some important documents that you’ll need to read and either print or save before you apply:

Once you’ve read them and are happy with everything, you’re ready to apply. If you’re aged 16 or 17, you’ll need to make sure you have your National Insurance number to hand.

Apply now

Frequently asked questions

If you need help with completing the application or want to change any of the details provided on a previous application, please call Halifax Share Dealing on 03457 22 55 25 (lines open Mon-Fri 8am-9.15pm and Sat 9am-1pm).

You’ll have 30 days to cancel if you change your mind – this starts from when you receive your welcome pack, which will include details of how to cancel. If you decide to cancel before you’ve invested your subscription we'll give you your money back in full. If you have invested your subscription we'll give you your money back less any fall, or plus any rise, in the investment value. This amount is calculated using the next price released after we receive your written cancellation instruction. You may not get back the same amount you paid in.

Once you've opened a Junior Stocks & Shares ISA, you can transfer money into it from another Junior Cash or Stocks and Shares ISA. Just complete and return the Junior Cash ISA transfer form (PDF) or the Junior Stocks and Shares ISA transfer form (PDF).

It’s important to remember that we only accept transfers in in cash, so you’ll need to sell any stock you hold in another Junior Stocks and Shares ISA before you can transfer it in to the Halifax Junior Stocks & Shares ISA.

Our Order Handling Policy sets out the arrangements that we have put in place to ensure that we meet our “best execution” obligations. In simple terms, this means the steps we take to ensure that customers get the best price available for their deal at the time they request it.

Our Conflicts of Interest Policy explains how we identify and manage any conflicts that may arise, which might result in a material risk to the interests of our customers.

The tax advantages of the Junior Stocks & Shares ISA depend on the child's individual circumstances and may change in the future.

Financial Services Compensation Scheme

Eligible investments are protected up to a total of £50,000 by the Financial Services Compensation Scheme.

Find out more

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Halifax is a division of Bank of Scotland plc. Registered in Scotland No. SC327000. Registered Office: The Mound, Edinburgh, EH1 1YZ. Bank of Scotland plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 169628.

Halifax Share Dealing Limited. Registered in England and Wales no. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London, E14 5HS under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager