Stocks & Shares Junior ISA - Tracker Version

Frequently Asked Questions:

• What is the Tracker Junior ISA?

  Junior ISAs are a new tax efficient account available to all children aged under 18 who are UK resident and who did not qualify for a Child Trust Fund.

  Kingston Unity's Tracker Junior ISA is a Stocks & Shares ISA that invests in our Tracker Fund. This fund aims to track the performance, both upwards and downwards, of the FTSE All-Share Index.

  The fund aims to provide medium to long term growth, although there could be short term fluctuations. The aim of the Tracker ISA is to achieve growth, whilst spreading the risk by investing in a broad range of equties.

  You should remember growth is not guaranteed and is dependent on the performance of the underlying fund which may go down as well as up. You may get back less than you have invested.

• Are there different types of Junior ISA?

  Yes, there are Cash and Stocks& Shares versions of the Junior ISA.

  Kingston Unity only offers the Stocks & Shares version.

  Your child can hold both a Cash and a Stocks & Shares version, as long as the overall contributions do not exceed £3,600 per tax year.

• Where is my money invested?

  Premiums are invested in our Tracker Fund which has a spread of equities designed to track the performance of the FTSE All-Share Index which represents most of the UK market. The majority of the investments in the fund will be UK investments although the overall proportion will change in accordance with the weightings within the FTSE All-Share.

• Who can have a Junior ISA?

  Any UK resident child aged under 18 who did not qualify for a Child Trust Fund.

  This is any child born on or after 3rd January 2011.

  Any child aged under 18 who was born before 1st September 2002

  Any child born between 1st September 2002 and 3rd January 2011 who is UK resident but who did not qualify for a Child Trust Fund.

• How much can be paid into a Junior ISA?

  The most that can be paid into a Junior ISA is a combined amount of £3,600 per tax year. This amount is called an allowance.

  The allowance will increase each year with inflation. The first increase will be in April 2013.

  A tax year runs from 6th April to 5th April in the following year.

  Family and friends can all contribute into a child's Junior ISA as long as the total invested is not greater than £3,600 in any tax year.

• Who can open a Junior ISA?

  For a child aged under 16, anyone with parental responsibility can open a Junior ISA for that child.

  Children aged 16 and 17 can choose to open a Junior ISA for themselves.

  When a child reaches the age of 16 they can choose to manage their Junior ISA themselves, but if they do not choose to do this then the person with parental responsibility will continue to manage the account.

• When can the child access their money?

  The account is set up for the child and aonly the child can access the money.

  They can only do this when they reach the age of 18.

• Can a Junior ISA be invested with a different provider each year?

  Unlike adult ISAs, each typ e of Junior ISA has to be kept with the same provider. You child can have a Junior Stocks & Shares ISA with one provider, and a cash ISA with another provider but they cannot have more than one of each type.

  Junior ISAs can be transferred between providers, but the full amount in the Junior ISA would need to be transferred.

• What if my child already has a Child Trust Fund?

  If your child already has a child trust fund then they will not be eligible for a Junior ISA.

  From 1st November 2011, to make sure children who have child trust funds will not be disadvantaged, the child trust fund annual allowance will increase to £3,600.

• Can my child still have a Junior Saver if they have a Junior ISA?

  Yes, you can still open a Junior Saver for your child as well as a Junior ISA.

  As Junior Savers can mature before a child reaches age 18 (as long as they run for at least 10 years) then a Junior Saver could complement your child's savings by building up a lump sum before the age of 18.

• What is the difference between a Junior ISA and a Child Trust Fund?

  There are no government contributions to a Junior ISA, unlike CTFs which were opened with a 'voucher' from the government.

• What are the charges?

  There is a 1.5% annual management charge which is taken into consideration before the unit price is declared. Management charges are not taken off individual Junior ISAs.

• What might I get back?

  What you might get back depends upon the investment performance of the underlying funds during the life of your investment. The fund aims to provide upward growth in the medium to long term but this is not guaranteed.

Where are my premiums invested?

The premiums are invested in the Kingston Unity With-Profits Fund which invests in a mixture of assets such as property, fixed deposits, shares and cash. Find out more »