They grow up so fast, don’t they? One minute they’re crawling around on all fours, the next they’re asking to borrow the car keys. With a Junior ISA (JISA) their money can grow as they do, helping you to give them the best start in life.
We all dream about giving our little ones the best start in life so they have a strong foundation to build on. A Junior ISA (JISA) can help to build a financial future for your children. Once opened by a child’s parent or guardian, anyone can set up the Direct Debits or add lump sums. Children aged 16 and 17 can even open a Junior ISA themselves.
Our Junior ISA is provided by Foresters Friendly Society, which owns POIS, and can be opened by setting up a monthly Direct Debit, investing a lump sum or by transferring other ISA savings or a Child Trust Fund. It is classified as a Stocks and Shares ISA.
A little thank you, just for you!
We’re delighted you’re thinking about taking out a Junior ISA. As a thank you, when you invest a lump sum of at least £4,000 online, or submit a transfer request to open a new Junior ISA by post, you will receive an M&S Gift Card up to £60 once your money has remained invested for 3 months.
- £30 M&S Gift Card for a lump sum investment of £4,000 – £7,999
- £60 M&S Gift Card for a lump sum investment of £8,000+
Why choose the Junior ISA?
A simple, affordable way for you to save up to £9,000 this tax year for your child.
A JISA is available for children aged 0 – 18. However children aged 16 and 17 can open a plan themselves.
Make regular payments from just £50 per month, lump sums of at least £500 and top ups of at least £250. Transfers from other Junior ISAs and Child Trust Funds are also accepted.
Family and friends can pay in too – making a top up a perfect alternative for birthday and Christmas presents.
Your money is invested in Foresters’ top performing With Profits fund so there is potential for growth thanks to annual and final bonuses. (Source: Barnett Waddingham Survey Dec 2018)
Access to membership benefits including discretionary grants to help cover the cost of things like higher education and healthcare costs.
How would you describe POIS to someone who had never heard of them?
“Well organised outfit. They value your membership and keep you informed. I trust them to take care of my investment.” POIS Member
“Very welcoming and friendly and easy to talk to.” POIS Member
See how much you could save
Added value for your child – Member Benefits
Taking out a Junior ISA is only the start. By doing so, your child will become part of the POIS family which is now a part of Foresters Friendly Society, a well-established UK friendly society. This means they can enjoy some wonderful, unique benefits such as discretionary grants to help with higher education costs when the time comes and to support life’s ups and downs. In 2018, we gave back over £1.1million to our POIS and Foresters members in the form of discretionary grants.
Can anyone open a Junior ISA (JISA)?
A Junior ISA must be opened by the child’s parent, guardian or person with parental responsibility. But anyone can pay into it by setting up a Direct Debit or adding lump sums.
Up until the age of 16, the account is managed by the parent or guardian. After that, the child can take responsibility although anyone can still add to the plan. Once the child turns 18 they can access the money in the account. No one else can access the savings as the Junior ISA is held in the child’s name.
Children aged 16 and 17 can open a JISA themselves.
Can I open more than one Junior ISA?
Your child can have a Cash Junior ISA, a Stocks and Shares Junior ISA, or both.
If they have both, you must still stay within the annual Junior ISA allowance every year. You don’t get two allowances because you have two ISAs.
A Junior ISA is also different to an adult ISA, where adult ISAs allow you to have more than one ISA account from different tax years, your child can only hold one cash Junior ISA and one stocks and shares Junior ISA. So if your child already has £5,000 invested in a stocks and shares Junior ISA and you would like to open a new stocks and shares Junior ISA with Foresters, you will need to transfer the £5,000 into the new plan.
How do transfers work?
Transfers into a Stocks and Shares Junior ISA with Foresters Friendly Society will be managed on your behalf, making the process as easy as possible. All you need to do is complete and submit a Transfer Application Form. We will then liaise with your current provider on your behalf to transfer the funds across.
Can I hold a Junior ISA and a Child Trust Fund (CTF)?
Unfortunately it’s not possible for your child to hold a Child Trust Fund (CTF) and a Junior ISA. However, the CTF can be transferred into the Junior ISA, as can another Junior ISA held with another provider. If you’d like to transfer a CTF or Junior ISA, all you need to do is download a Transfer Application Form and submit your application by post. We will then liaise with your current provider on your behalf to transfer the funds across.
Are there any charges?
There is an Annual Management Charge of 2% of the value of your Junior ISA which covers the costs of administering the Junior ISA for you. Charges are deducted upfront before any bonuses are declared, so there are no additional charges for you to pay.
It is possible that the charge could change in the future, but Foresters Friendly Society promise it will never exceed 3% of the value of your Junior ISA in any one year. Take a moment to read the relevant Junior ISA Key Information Document and Important Information for more information about charges.
Where is my money invested?
Your money is invested in Foresters Friendly Society’s consistently well performing With Profits Order Insurance Fund. Depending on how the fund performs, we aim to add annual bonuses and a final bonus to your child’s Junior ISA. This is to boost their plan’s value. The addition of bonuses is not guaranteed.
You’ve worked hard for the money you invest, so extra good care is taken with it. That’s why your money is spread across a number of different types of investments to help minimise risk and increase the potential returns. By doing this your money can benefit from exposure to a range of asset classes which may include equities (company shares), fixed interest bonds (government and company), property and cash.
How can I be sure my money will be invested responsibly?
As a friendly society, it’s particularly important to Foresters that your money is managed in an ethical and responsible way. As a signatory of the Principles for Responsible Investment (PRI) it demonstrates their commitment to responsible investment, to reducing their impact on the environment and mitigating climate change risk in their investment portfolios.
When you open a plan, you can be confident that investing with Foresters means your money will be invested in a trustworthy and environmentally conscious way. The PRI is the world’s leading supporter of responsible investment and promotes a better understanding of the investment implications of environmental, social and governance (ESG) factors.
Find out more about the 6 PRI principles Foresters have signed up to here.
How much interest does the Junior ISA plan pay?
As your money is invested in the Foresters Friendly Society Order Insurance with profits Fund, rather than paying interest the value of your child’s Junior ISA has the potential to grow through the addition of bonuses. What growth the Junior ISA receives will depend on how well the fund performs.
The following annual bonus rate was declared for the Junior ISA in 2018:
|Year||Annual Bonus Rate|
The annual bonus rate is applied to how much you have invested plus any annual bonuses that have been previously added.
Please remember that bonuses are not guaranteed. Your child may also not get back the full amount originally invested, dependent on the investment conditions at withdrawal.
Please read Foresters Friendly Society’s Principles and Practices of Financial Management (PPFM) to find out more about the addition of bonuses and how we manage our fund.
The product design may vary to best meet the needs of policyholders which may affect the timing and size of future bonuses. Therefore the bonus rate provided above is for information purposes only and should not be considered an indication of likely future performance.
Can withdrawals be made from a JISA?
Unfortunately not. The Junior ISA is designed for long-term growth and legislation states that no one can access the funds before the child turns 18.
What happens when the child turns 18?
Once your child turns 18 they will be able to access their Junior ISA savings. Their lump sum can either continue to be invested as an adult ISA, or the money can be released and used for whatever they need it for. University fees, for example, saving towards a deposit on a house, or even buying their first car.
What would happen if the person paying contributions passes before the child reaches 18?
As the plan is held in the child’s name and is designed to allow anyone to pay into it, the Junior ISA will continue until the child turns 18.
Can I change my mind?
Of course. Once your application is accepted you will receive a statutory notice of your right to cancel. At this point you have 30 days from the commencement date of the Junior ISA, or the date the notice is received, whichever is later, in which to change your mind.
For more information please see the Important Information document.
How do I decide if the Junior ISA is right for me?
If you’re unsure if this plan is suitable for your child, then you should seek advice from a Financial Adviser. Please be aware that you may have to pay for this advice.
Looking to top up an existing Junior ISA? There are three ways.
Use your debit card to make a one-off, secure, payment. Top up online now.
Call us on 0800 622 417 and we can take a payment from your debit card over the phone.
Download the Junior ISA Top Up Form. Simply complete the Direct Debit instruction or attach a cheque for the lump sum contribution amount, then send it back to us and we will do the rest for you.
We’re here if you need help or have any questions
If you have any questions that we have not yet covered or just want to talk your application through, please give us a call. Our friendly UK based team are on hand to make things as easy as possible (lines are open Monday to Friday 9 am to 5 pm).