Savings - Junior Cash ISA

Summary Box - Key Product Information for our Savings Accounts
Account Name Junior Cash ISA
Interest Rates (AER's) Gross PA % Net Equivalent PA % AER% (Gross)
2.25
N/A
 2.25
Variable rate of interest paid annually
Tax Status Tax Free
Conditions for bonus payment N/A
Withdrawal Arrangements No withdrawals until aged 18. Transfer of the complete funds to/from another provider is allowed.

Access

Pay in via Branch and Post

Amount

£1 - £3,600 (maximum investment 2011/2012 tax year)
Age Birth to 18

In October 2010, the Government announced that it would create a new tax-free children's savings account to offer parents a simple and tax free way to save for their child's future. This new account, the Junior ISA, launches on 1st November 2011. Harpenden Building Society is pleased to offer a Junior Cash ISA, to allow young savers to make the most of the interest earned on their savings. In line with existing Cash ISAs interest is paid tax free. Then when you reach the age of 18 all of the savings and interest in your Junior Cash ISA will be transferred into an 'adult' cash ISA and continue to benefit from the tax free status.

How does it work?
You may open a Junior Cash ISA if you are under the age of 18 and you do not have a Child Trust Fund (this usually means that you were born before 1 September 2002, or after 3rd January 2011), when the account application is made.

If you are aged between 16 and 18, you can make the application yourself. If you are under 16 years old, a parent (or a person with parental responsibility) can apply to open an account. In both cases, the Junior Cash ISA will be in the name of the child and any money held in the account is owned by the child.

The person making the application will be recorded as the 'registered contact' and will be required to sign the declaration and authorisation form contained within the application form.

Anyone can make a subscription to a Junior Cash ISA, but these are considered gifts to the child by the HM Revenue and Customs and cannot be repaid to the subscriber if they later change their mind. Withdrawals from a Junior Cash ISA are only permitted when the child reaches the age of 18.

You can hold two types of Junior ISA: Junior stocks and shares ISA and Junior Cash ISA. Unlike 'adult' ISAs where an investor can only subscribe to a new ISA in each tax year, you can hold up to two Junior ISAs only (one of each type) throughout your childhood. Harpenden Building Society only offers a Junior Cash ISA.

How much can I save?

You need just £1 to open a Junior Cash ISA with Harpenden Building Society. You can make additional investments, subject to the annual subscription limit, which for the tax years 2011/2012 and 2012/2013 is £3,600. From the tax year 2013/2014 the annual limit will be increased in line with the Consumer Price Index. Any part of the limit which is not used cannot be carried forward or back to other tax years. If you decide not to save in any tax year you can resume later on, but please note that the maximum investments apply per tax year.

You have the option to make regular or lump sum investments when it suits you. Ideally, you could start each tax year with the maximum investment - this will bring you the greatest benefit - but you can start with just £1 and add to it when you want to, up to the annual subscription limit allowed for that tax year. We will issue you with a passbook; this is a record of the transactions on your account. Please present it each time you pay into your account at one of our branches. If you pay in by other methods, please ensure that you send the passbook to us periodically, so that we can update it and you can then verify that the transactions are correct.

What happens at 16?

When you reach the age of 16 you can apply to become the 'registered contact' for your account. Between the ages of 16 and 18 you may also subscribe to an 'adult' cash ISA, while continuing to make subscriptions to your Junior Cash ISA; these investments will be subject to the annual limites set by the Government. This means that between the ages of 16 and 18 you could hold a Junior Cash ISA, a Junior Stocks and Shares ISA and an 'adult' cash ISA.

What happens at 18?

On your 18th birthday all investments in your Junior Cash ISA will be transferred to an 'adult' cash ISA, to preserve thier tax-free status. Before we can accept any further transactions on this account, we will ask you to complete the requisite ISA declaration and authoriation. We will also ask you to provide us with evidence of identity and address verification together with details of your National Insurance Number so that we can fulfil our regulatory and statutory duties. We will tell you what documents are acceptable for these purposes when we write to you. You will not be eligible to make withdrawals from your account and we will provide details of how to do this at the same time.

How is interest paid?

Your Junior Cash ISA will receive interest at the variable Junior Cash ISA rate. Interest will be added to your account annually on 5th April. Please note that interest cannot be withdrawn or paid to any other account.

Tax Benefits

No tax is payable on any of the interest received from the savings.

Paying money in

Money can be added to your account by any of the following methods:

  • Cash (up to £3,000 per day) or cheques can be paid in over the counter
  • You can ask your bank to arrange a direct transfer once your account has been opened
  • You may also pay cheques into your account by post

Our Freepost address is:

FREEPOST SB165, Harpenden Building Society, 14 Station Road, Harpenden, Herts, AL5 4BR

When making cheques payable to Harpenden Building Society you should also include the name of the person into whose account the money is being paid (e.g. Harpenden Building Society - Account holder's name).

Taking money out
Withdrawals are not permitted, except where a terminal illness claim made on behalf of the child has been agreed.
'Registered Contact'

HM Revenue and Customs define the 'Registered Contact' as the person who can agree with the Society the terms and conditions under which the account will operate, and give instructions to the Society for the management of the account. The person making the application will be recorded as the 'Registered Contact'.

There can be only one registered contact for the account. If you are aged between 16 and 18 you can become the registered contact for your account at any time, and without the consent of an existing registered contact (subject to an exception for children suffering from a mental disorder). Once you have taken responsibility for the account the registered contact status cannot be passed to another person.

During the lifetime of the account, the role of the registered contact can be passed to another person who has parental responsibility, subject to application. In this instance registered contact status can only be transferred with the consent of the existing registered contact. Please contact us if you require further details.

Identification

We are required by law to check the identity and address details of all account holders. We will need to see the documentary evidence for the registered contact and the child, if the child is not the registered contact.

For the 'Registered Contact'
These are the requirements for a child aged between 16 and 18 or a parent (or the person with parental responsibility).

TO CONFIRM YOUR NAME
  • Valid Passport
  • Valid UK photo-card driving licence, with counterpart slip
  • Known employer's identity card with photograph
  • Armed Forces identity card
  • HM Revenue and Customs Notice of Coding (less than 12 months old)
  • Evidence of entitlement to state or local authoridy funded benefit - housing benefit, council tax benefit (less than 12 months old)
  • National Insurance card

TO CONFIRM YOUR ADDRESS

  • Mortgage Statement (less than 12 months old)
  • Utility bill (less than 3 months old) Mobile phone bills are not accepted
  • Council Tax bill (less than 12 months old)

  • Bank or credit statement (less than 3 months old)

TO CONFIRM CHILDS NAME AND AGE

  • Current full passport
  • Birth Certificate
  • NHS Medical card

If you are unable to provide the requisite number of items from each list, please contact 01582-765411 for further guidance. Please be aware that we will need to see original documents, unless you are applying by post. In this case we will accept a black and white, certified photocopy of the document you are providing to confirm your name. The certified copy must be clearly legible and must show the printed name, address and profession of a UK lawyer, banker authorised financial intermediary, accountant teacher, doctor or post master/subpostmaster. The copy must be signed by the individual against the wording, "certified to be a true copy of the original document". Please note that we do not accept photocopies of documents to confirm your address, we must see originals.