Can You Take Money Out of a Junior ISA?
Understand the limitations of Junior ISA withdrawals. Funds are held for the child's long-term future, generally accessible at age 18.
A Junior Individual Savings Account (JISA) is a savings vehicle in the United Kingdom for a child’s future. These accounts provide a tax-efficient way for parents, guardians, and others to save or invest money on behalf of a child. Funds accumulated are safeguarded for the child’s benefit until they reach adulthood.
Understanding Withdrawal Restrictions
Money contributed to a Junior ISA legally belongs to the child. Once funds are deposited, they become an irrevocable gift and cannot be withdrawn by the parent, guardian, or registered contact. The primary role of the registered contact is to manage the account, not to access the savings. This restriction is in place to ensure the savings are preserved for the child’s long-term financial well-being.
JISA funds are inaccessible before the child turns 18 and this is a core feature. Even in unforeseen circumstances or financial emergencies, these funds remain inaccessible. This strict legal framework reinforces the JISA’s purpose as a committed savings plan for the child’s future, preventing early use of funds.
Accessing Funds at Age 18
When the child reaches their 18th birthday, the Junior ISA automatically converts into an adult Individual Savings Account (ISA). The now-adult child gains full control over the accumulated funds. This transition empowers the young adult to make their own financial decisions.
Upon conversion, the adult child has several options. They can choose to withdraw the entire sum, transfer it to another adult ISA, or continue to save within the converted account, benefiting from its tax-free status. The JISA provider typically contacts the registered contact and the child before the 18th birthday to outline the process. The child will usually need to verify their identity with the provider before issuing withdrawal or transfer instructions, ensuring proper control is passed.
Special Circumstances for Early Access
While strict, funds may be accessed from a Junior ISA before the child turns 18 in rare circumstances. The primary exception is when a child is diagnosed with a terminal illness. In such situations, the registered contact can initiate a claim to Her Majesty’s Revenue and Customs (HMRC) to access the funds.
To qualify for early access, a medical practitioner must certify the child has a progressive disease and is not expected to live longer than 12 months, although this specific timeframe does not apply in Scotland. If the claim is approved, HMRC issues a letter confirming funds can be withdrawn by the registered contact. If a child with a JISA passes away before reaching 18, the funds become part of the child’s estate. These funds are then distributed according to the child’s will or intestacy rules.