Danske Junior Cash ISA

Danske Junior Cash ISA

Prepare for your child's future
the tax-free way.​
 
  • Subscription allowance of £4,080 for tax year 2016/17
  • Earn 3% AER / tax-free
  • Savings held for the child until age 18​​​

Details

The Danske Junior Cash ISA is designed to help you save for your child’s future.

The money invested is held for the child until age 18 when the account will be converted into an adult Cash ISA.

Funds will then be available for them to withdraw or alternatively their savings can remain in the adult Cash ISA and continue to earn tax-free interest.

Please Note: Tax rules and tax levels may change in the future including the favourable treatment of ISAs

If your child is under 18, resident in the UK and does not hold a Child Trust Fund, the Danske Junior Cash ISA may be exactly what you are looking for to start saving for expensive third level education, travel experience, or a helping hand onto the property ladder. From 6 April 2015 a Child Trust Fund may be transferred into a Danske Junior Cash ISA.

This account is not suitable for day-to-day banking.

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Features

  • A children’s savings account with the same tax benefits as an ad​ult Cash ISA – e​xempt from UK income and capital gains tax.
  • Annual subscription allowance, currently up to £4,080 per child for the tax year 6 April 2016 - 5 April 2017.
  • The account is held in the child's name, but opened and managed by someone with parental responsibility for the child, or the child themselves if aged 16 or 17. However, it's not just your child that can benefit from a Danske Junior Cash ISA - if you are aged 16 or 17 and resident in the UK, then you can open a junior cash ISA for yourself. Even if you already hold an adult cash ISA, you can still hold a Danske Junior Cash ISA and make the most of its tax-free allowance.
  • Transfer an existing junior ISA or Child Trust Fund with another provider to a Danske Junior Cash ISA and we will pay interest on the full amount to be transferred as soon as we receive the application, provided the funds are free to move and not held in a fixed-term or notice account.
  • Anyone can make subscriptions to the Danske Junior Cash ISA - you don't have to have parental responsibility for the child to do this.
  • No withdrawals are permitted until the child reaches age 18 and the account becomes an 'adult' Danske Cash ISA - then the child has full access to the funds.
  • An attractive rate of interest, paid annually on 31st December (or the next business day if this falls on a weekend).
  • Subscriptions may be made by way of a lump sum and/or regular savings.
  • A minimum subscription of £25 is required to open a Danske Junior Cash ISA.
  • Statements are available at regular intervals of your choice (at least every 6 months).
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Interest Rates

Rate correct as at 10 October 2016

Danske Junior Cash ISA
Current rate (Variable)

Interest AER/ Tax-free ​
All balances 3.00% (Variable)

 

Interest is paid at the end of December each year.

AER stands for ‘annual equivalent rate’ and shows what the yearly rate of interest would be, after taking account of how often interest is added to the account. 

As every advertisement for a savings product that pays interest will quote an AER, you will be able to compare more easily what return you can expect from your savings over time. 

Tax-free means that interest is paid free from income tax. This position may change in the future.

We set the credit interest rate which is variable (this may be subject to change in the future). We will give you two months' written notice of any reductions to the credit interest rate.  If we increase the credit interest rate on your account we will make the change immediately.​​​​​​​​​​​​​​

Frequently Asked Questions

The Danske Junior Cash ISA is managed by Northern Bank Limited which is authorised and regulated by the Financial Conduct Authority.

We have taken some of your frequently asked questions and answered them below.

What is a junior ISA (JISA)?

Like the adult Individual Savings Account (ISA), a Junior Individual Savings Account (JISA) is a tax efficient way of saving as income earned is exempt from UK income tax and capital gains tax. There are two types of JISA - a junior cash ISA and a junior stocks & shares ISA. We offer a junior cash ISA only.

Who can have a Danske Junior Cash ISA?

Any child is eligible to have a Danske Junior Cash ISA if, when the account application is made:

  • they are under the age of 18;
  • they were born on or after 3 January 2011 or do not have a Child Trust Fund (CTF) account;
  • they are resident in the UK, or are a UK Crown servant, married to or in civil partnership with a Crown servant, or a dependant of a Crown servant; ;
  • they do not already have a junior cash ISA with another financial institution;
  • they have not already subscribed their current tax year's full subscription limit to a junior stocks & shares ISA.

    or, if the Danske Junior Cash ISA is being opened to transfer in an existing JISA or CTF the child:

    • must be under the age of 18;
    • must not already have a junior cash ISA with another institution.
Can a new JISA be opened each tax year?

No. An eligible child can hold only one of each type of JISA (cash and stocks and shares) in their childhood. These accounts can be held with either the same or different JISA providers. We currently offer a junior cash ISA only.

It is possible to transfer a JISA between providers and it is also possible to transfer from one type of JISA to another (provided that at the end of the transfer process, the child still does not have more than one of each type of JISA). You can request a transfer by contacting the new JISA provider who will arrange the transfer.

How much can be saved in the Danske Junior Cash ISA?

A payment into an JISA is called a subscription. There is an overall annual JISA subscription limit which is reviewed and set by HM Revenue and Customs (HMRC) for each tax year, based on the Consumer Price Index. A tax year runs from 6 April to 5 April the following year. The full subscription limit can be added to one type of JISA or split across the 2 types of JISA with the same or different JISA providers.

The annual subscription limit for JISAs has been set at £4,080 for tax year 2016/17.

An initial subscription of £25 is required to open a Junior Cash ISA with us. After that anyone can add as little or as much as they want up to annual subscription limits set by HMRC.

Can withdrawals be made from a JISA?

No. The money is locked in for the child until they are 18 – no withdrawals are permitted before then except in the event of terminal illness (when authority may be granted by HMRC) or death of the child.

When the child reaches age 18, a Danske Junior Cash ISA will convert to an adult Danske Cash ISA. The child may then withdraw the funds or their savings can remain in the adult Danske Cash ISA and continue to earn tax-free interest.

Who can open and operate the Danske Junior Cash ISA?

Someone with parental responsibility for an eligible child can open a Danske Junior Cash ISA for that child. Alternatively, if the child is aged 16 or 17, the child can open the account. The account will always be in the name of the child.

Whoever opens the account will be the Registered Contact on the account for receipt of any statements and correspondence from the Bank. Once the child reaches age 16 or 17 they can request to be the Registered Contact on their own account and they do not need the permission of the Registered Contact to do this. However, if the child does not apply to become the Registered Contact for their own account, the existing Registered Contact will continue to fulfil the role until the child turns 18.

Once the JISA is opened, anyone can gift money directly into the account.

Can the Registered Contact for the Danske Junior Cash ISA be changed after the account is opened?

Yes. Anyone aged 16 or over, with parental responsibility for the child can apply be the Registered Contact on the account. We will need to obtain authority from the existing Registered Contact to effect this change.

Alternatively, from age 16, the child may apply to be the Registered Contact and they do not need the permission of the Registered Contact to do this. However, if the child does not apply to become the Registered Contact for their own account, the existing Registered Contact will continue to fulfil the role until the child turns 18.

Applications to change the Registered Contact on an existing Danske Junior Cash ISA should be made in Branch.

Who can make subscriptions to the Danske Junior Cash ISA?

Once a Danske Junior Cash ISA is opened, anyone can subscribe to the account. All subscriptions are deemed to be gifts to the child and cannot be reversed. Once lodged to the account, funds cannot be accessed until the child turns 18, and then only by the child.

How is a Danske Junior Cash ISA opened?

If you have a parental responsibility for an eligible child or you are the eligible child aged 16 or 17 and want to open a Danske Junior Cash ISA, just call into any of our branches. Alternatively, if you have parental responsibility for the child and are 18 years of age or over, you can apply by telephone on 0800 660033*.

If the child has a National Insurance Number, you will need to provide this when opening the account.

Important call information

Can a junior cash ISA, a junior stocks & shares ISA or a Child Trust Fund be transferred from elsewhere to a Danske Junior Cash ISA?

Yes. You can transfer money which has already been saved in a junior cash ISA, a junior stocks and shares ISA with another ISA manager or a Child Trust Fund with another provider to a Danske Junior Cash ISA as long as it does not result in the child having two junior cash ISAs or a junior ISA and a Child Trust Fund at the end of the transfer process. Contact any of our branches and we can arrange the transfer for you.

If you ask us to transfer a JISA or CTF into a Danske Junior Cash ISA with us, we will pay interest on the full amount to be transferred as soon as we receive the application. This is provided that the funds are free to move and not tied up in a fixed-term or notice account.

Applications must be made by the Registered Contact on the account transferring in.

What is the difference between a Child Trust Fund and a JISA?

There are many areas in which the Child Trust Fund and JISA are very similar. Most notably, in both cases funds paid in are 'locked' in the account and cannot be accessed by anyone except the child whose name the account is in. Even then, the child can only access the money after turning 18. The Child Trust Fund's annual subscription limit is the same as JISA subscription limits - i.e. £4,080 for tax year 2016/17.

There are also a number of other differences however, the main ones are:

  • There is no Government contribution to a JISA
  • The Child Trust Fund subscription limit runs from the child's birthday to their next birthday, whereas JISA subscription limits apply to tax years (6 April to 5 April)
Can a Child Trust Fund be switched to a JISA?

Yes. Parents who took out a Child Trust Fund for their child can transfer the Child Trust Fund investment in full into a Junior Cash ISA.

How does the child get access to the Danske Junior Cash ISA when they turn 18?

When the child turns 18 the Danske Junior Cash ISA will convert to our adult Danske Cash ISA. We will write to the child at this time with details of the Danske Cash ISA and their options to continue to save or withdraw the funds.

If the child moves abroad, what will happen to the Danske Junior Cash ISA?

The child needs to be a UK resident for the tax year during which the Danske Junior Cash ISA is first opened. If the residency status changes in a later tax year, the account can remain open, receive subscriptions and interest will still be paid tax-free. A junior cash ISA may also be transferred to or from another ISA provider. Investors who are unsure of their residence status should refer to the Statutory Residence guidance at www.hmrc.gov.uk/international/rdr3.pdf external website

Is a person aged 16 or 17 eligible for both a Danske Junior Cash ISA and an adult cash ISA?

Yes. A person aged 16 or 17 may hold both a Danske Junior Cash ISA and an adult cash ISA and can benefit from the full annual subscription allowance to both accounts. This means that during the current tax year of 6 April 2016 - 5 April 2017, they can subscribe up to £4,080 to a Danske Junior Cash ISA (taking into consideration any subscriptions which have already been made a junior stocks and shares ISA elsewhere) and up to £15,240 to an adult cash ISA.

Can I change my mind about a Danske Junior Cash ISA (cancel the account) after I have opened it?

Yes. The Registered Contact on the JISA has the right to cancel the Danske Junior Cash ISA within 14 days of the day after the date the account is opened or the date the terms and conditions are received, whichever is later. You can cancel the agreement by contacting your branch or by writing to the ISA Manager at:
Danske Bank,
Donegall Square West,
Belfast BT1 6JS.

Contact
0345 6002 882

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