New Investors JISA FAQ

So JISAs are fresh on the Wealth8 app, but what are they? How do they work? What can I do with them? This is your one-stop shop for any frequently asked questions you may have about JISAs and putting them to use in your Wealth-building strategy. 

Q: What is a JISA? 

A: A Junior Individual Savings Account (JISA) is a tax-efficient savings account for children under 18. It allows parents or guardians to save or invest on behalf of their child, helping to build a financial foundation for their future. The money is able to grow free from capital gains tax or dividend tax. This can significantly increase the savings or investment growth over time. 

Q: Why should I open a JISA for my child? 

A: JISAs are a great way to give your child a financial head start. The money grows tax-free, meaning no income tax, capital gains tax, or dividend tax is deducted. This can significantly increase the savings or investment growth over time. 

Q: How much can I contribute to a JISA? 

A: For the 2024/2025 tax year, the annual JISA contribution limit is £9,000. You can contribute as much as you like up to this limit, and it resets at the start of each new tax year (April 6). 

Q: What types of JISAs are there? 

A: There are two types of JISAs: 

• Cash JISA: Works like a savings account, where your money earns interest. 

• Stocks & Shares JISA: Allows you to invest in the stock market, offering the potential for higher returns, though with some risk. 

Wealth8 specializes in Stocks & Shares JISAs, helping your investments grow with the power of compound returns. 

Q: Who can open a JISA? 

A: A parent or legal guardian can open a JISA on behalf of a child. Once opened, anyone (friends, family, etc.) can contribute to the account. 

Q: When can my child access the money? 

A: The funds in a JISA are locked until your child turns 18. At that point, the account converts into an adult ISA, and they can access or continue investing the money. 

Q: What happens if I can’t use the full contribution limit? 

A: You’re not obligated to use the full limit. You can contribute any amount within your budget, and it will still benefit from tax-free growth. Regular contributions, even small ones, can make a big difference over time. 

Q: What happens to the money if my child decides not to use it at 18? 

A: Once the JISA converts into an adult ISA at age 18, the funds remain tax-free. Your child can leave the money invested, allowing it to grow further, or withdraw it for their needs. 

Q: Can I transfer an existing JISA to Wealth8? 

A: Absolutely! If you have a JISA elsewhere, you can transfer it to Wealth8 to take advantage of our investment options and community-focused support. Transfers are simple, and your child’s savings remain tax-free during the process. 

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Note: 

It’s important to note that tax conditions are dependent on individual circumstances and are subject to change. If you are unsure of your situation, please seek professional financial advice.  

Additionally, please be aware that when investing, your capital is at risk. The value of your investments may go up as well as down, and you may lose all your initial investment.