Junior Stocks and Shares ISA

The Junior ISA was introduced by the Government on the 1st of November 2011. RBS currently only offers a Junior Stock and Shares ISA, a tax efficient way for you to invest in the stockmarket on behalf of your children.

There are two ways to setup a Junior Stocks and Shares ISA with RBS:

• Set up a direct debit for £20 per month
• Invest a lump sum of £250

Additional Investments

Once you have opened the ISA with the minimum required, you, or friends and family can top up further amounts of £1 or more in the fund up to a value of £3,600 for this tax year.

A tax efficient way to invest

Any tax treatment and/or reliefs referred to are those applying under current legislation, which may change, and their availability will depend on your child’s individual circumstances. The favourable tax treatment of Junior ISA’s may not be maintained.

There are lots of good reasons for investing in the Junior Stocks and Shares ISA.

Here are just a few of them:

The potential for higher returns - the funds are largely invested in the stock market, managed by experts to give more potential for growth. However, unlike a deposit account, remember that the value of the Junior Stocks and Shares ISA may fall as well as rise, and profits are not guaranteed.

Charges – There are no upfront charges, and the annual management charge is capped at 1.5 % and included within the price of the fund.

Top up the investment - why not save regularly with a Direct Debit? Or, you and your friends or relatives can make additional investments from as little as £1 a time, up to a limit of £3,600 for the current tax year. Please note top ups must be in rounded pounds.

Am I eligible to apply for a Junior Stocks and Shares ISA?

Junior Stocks and Shares ISA’s are available for any child under 18 who does not have a Child Trust Fund. RBS only accepts children under the age of 16, as we only offer a Stocks and Shares ISA, which is an investment product and should typically be held for the long term, i.e minimum of 5 years. The person applying on behalf of the child must be aged 16 or over.

Where is my child's money invested?

The money will be invested into the Stakeholder Fund, which is an investment fund that invests in equities, bonds and cash. This spread of assets aims to smooth out fluctuations in the share price as the markets rise and fall, however you should note that there is a risk to investing in this fund, and your child could lose money.

Your child's savings will be invested into the Stakeholder Fund which is a stock market based investment and is classed as a Balanced Managed fund. There is a greater level of risk investing in this fund than in a Cash Junior ISA, but a lower level of risk than investing directly in shares.

Will I receive a voucher from the Government?

No. You will not receive any vouchers from the Government.

When can my child take money from the account?

The money must remain in the account until your child reaches the age of 18. At that age, your child is free to withdraw the money or continue to invest. The Junior Stocks and Shares ISA will automatically roll over into an adult ISA and we will contact the child to confirm whether they wish to withdraw the account or continue to remain within the adult ISA.

How do I find out how the fund is performing?

Every six months we will send you a statement confirming the value of the investment and how it has performed.

Alternatively the fund prices are published daily in the Financial Times, or you can also go online to rbs.co.uk to see the fund price at any time.

Can I change my mind?

Yes, you have the right to change your mind within 14 days of setting up the investment. You will receive back the market value of your investment at the time you cancel, or the original investment, which ever is the lower.

Can I transfer money into my own bank account?

No. You are unable to take out any of the investment from the Junior ISA account.

When can my child start to manage the account?

When your child is 16 years of age they can manage the account, however they are unable to withdraw any funds until they reach 18.

How can I top up up my child's Junior Stocks and Shares ISA once it has opened?

You can either call us on:

RBS: 0845 603 4045
Minicom: 0800 404 6160

To top up by debit card, amend an existing direct debit, or alternatively send us a cheque to: The Royal Bank Of Scotland, PO BOX 1188, The Grange, Cheltenham, GL50 9UE clearly stating the account reference and child’s name to which the payment applies.

It's important to us that you make the right investment decision to meet your needs

Please find the full product terms and conditions (PDF)

Find out more and apply online

Please note that you are not receiving any advice from RBS on the Junior Stocks and Shares ISA, and if you are unsure that this is the right investment for your child, you should consider seeking financial advice from an Independent Financial Advisor.

All applications for the RBS Junior Stocks ISA can only be made online.