How does a Junior ISA work?

A Junior ISA has great potential to grow into a really nice lump sum for your child’s future as you save over time. Choosing a Stocks & Shares Junior ISA is a great way to invite other loved ones of your child/children to invest in them too.

Is a Junior Stocks and Shares ISA right for me and my child?

Junior ISAs are ideal if you want a product that any family member can contribute to. Anyone can invest in your child’s future in either monthly instalments via direct debit, or lump sums, as and when it suits them.

It’s important to note that if you’re trying to open a Junior ISA account for your Grandchild, niece, nephew or otherwise – you’ll need to have their parent or guardian open the account. It’s up to them if they want to pay in or not, but only those with parental responsibility can open the account.

When Does my Child Get Their Money?

When they turn 18, the money is theirs to do with it as they please. When their 18th birthday is coming up, we’ll contact them to let them know more about their options – they could choose to reinvest it into another account; such as a Lifetime ISA* to save towards a mortgage.

Keeping Your Children Safe with Unity Mutual

As of April 24th 2023, you can now secure a free space on a Baby and Child First Aid Class with Mini First Aid when you open a Junior ISA with Unity Mutual.

Your little ones are the most important thing in your life, as important as it is to support their financial future, keeping them safe in the present day and for years to come is a crucial skill for any parent.

In the Mini First Aid course you’ll learn life-saving skills that can help you if your child is faced with a medical emergency.

Mini First Aid are an award-winning paediatric first aid provider, that work with huge partners such as Child’s Farm, Boots, Babies R US, and many more. They have 70 franchises nationwide, and you can visit their website to find your local classes. If you can’t find a class near you, or you can’t make it to a training class in person, you can book for the online classes.


To get yours, simply open a Junior ISA with Unity Mutual, and look out for the information on how to book at your local Mini First Aid franchise in your Welcome Pack.

Click here to view the terms and conditions of booking your space.

How Do I Transfer an Account?

You can transfer any Junior ISA or Child Trust Fund into one of our Stocks & Shares Junior ISAs. Simply download our Junior ISA Transfer Form, fill it in, ping it back to us and we’ll do the rest.

Any Questions?

If you need help getting your account set up, or you have any questions, feel free to contact our team on (0161) 214 4628 or email

(Our team is available from 9am to 5pm Monday-Thursday and 9am to 4pm on Fridays)


The Important Bits:

  • Any child living in the UK, without a Child Trust Fund or an existing JISA can have an account.
  • Anyone with parental responsibility over the child can open an account on behalf of a child.
  • Once the account has been opened, any of your child’s loved ones can contribute to their account.
  • You can transfer your Junior ISA from another provider to us, even if it’s not a Junior Stocks and Shares ISA.
  • All of the money in the account belongs to the account holder (your child), and will only be released to them when they turn 18.
  • Your child can become the registered contact on the account from the day they turn 16.
  • All of the funds in your child’s Junior ISA account are covered by the Financial Services Compensation Scheme (FSCS)
  • All parents and guardians that open a Junior ISA for their child will be entitled to a free first aid course with Mini First Aid
  • Details
  • FAQs
  • Performance

Please read through these documents to make sure our Stocks & Shares Junior ISA is right for you and your child. 

Q.1 What is a Junior ISA?

The Junior ISA is an Individual Savings Account which allows investments to grow tax-free and is available to all children living in the UK under the age of 18, who were not entitled to a Child Trust Fund (CTF) Account. In addition CTF investments can be transferred to a Junior ISA providing the CTF account is closed.

The Junior ISA allows for tax free investments to be made on behalf of a child, subject to qualifying conditions laid down by HMRC regulations. Upon reaching 18 years of age the value of the fund is made available to the child as the sole beneficiary.

There are two types of Junior ISA on the market: Stocks & Shares and Cash. We only offers a Stocks & Shares Junior ISA with a small amount of Life Assurance built in.

Q.2 Who can open a Junior ISA?

Our Junior ISA can only be opened by someone who has parental responsibility for the child and is aged 16 years or above. The person who sets up the Junior ISA is known as the ‘Registered Contact’. This person will be responsible for the running of the Account on the child’s behalf until the child reaches at least 16 years of age, or, the registered contact signs over responsibility to another adult with parental responsibility.

Once a child reaches 16 years of age they may opt to take over responsibility of the running of their Account themselves.

Our Junior ISA may not be opened in the name of a child who already has a Stocks & Shares Junior ISA or a Child Trust Fund unless the account is closed and the investments are transferred to our Junior ISA.

Q.3 How much can be invested?

Parents, grandparents and other family and friends are able to make contributions to the Account up to the HMRC Junior ISA contribution limit in each tax year. The current limit can be found in our Contribution Limits page. It is anticipated that this limit will increase each year in line with Inflation.

The account can be opened with an initial contribution of £1. You can also pay by Direct Debit from as little as £10 per month, and contributions can be stopped or changed at any time without penalty.

Contributions can be made in a number of ways;

  • regular monthly payments by Direct Debit or standing order
  • payments by cheque - made payable to ‘’Unity Mutual’ with your child’s name and Junior ISA number on the back
  • payments by direct money transfer - ensuring your child’s Junior ISA number is quoted in the transfer

The minimum additional contribution is £10, and contributions can be stopped or changed at any time without penalty.

All money paid into the Account belongs to your child, which can only be accessed when they reach age 18.

Q.4 Where is the money invested?

The money is invested in the Unity Mutual Equity Fund. The investment objective of this Fund is to track the capital performance of the UK stock market by investing in over 600 UK companies. As the Fund’s investments are spread across a wide range of companies, the risk of it being affected by a single underperforming company or sector is reduced.

The contributions you pay are used to purchase units in the Fund (refer to sections ‘1. Definitions’ and ’18. Unit Prices’ within the Terms & Conditions).

The investment performance of the Fund will determine the value of your child’s Junior ISA.

Q.5 How do I keep track of the investment?

A statement will be issued annually which will show the value of the Junior ISA plan, or you can also contact us at any time to ask for a valuation.

However, at any time you can always visit the 'My Fund Value' page within the 'Customer Centre' of our website where you can get an up-to-date value.

You can also contact us at any time to ask for a valuation.

Q.6 What should I consider?

You should aim to invest for no less than five years as an investment of less than five years may not return any real growth.

You should bear in mind that over the mid to long term (5-10 years and over), inflation is likely to erode the purchasing power of your child’s investment.

Q.7 What are the risks?

Risk Indicator

The Summary Risk Indicator (SRI) assumes you keep the plan for 18 years. The actual risk can vary significantly if you cash in at the early stage and you may get back less.

Note, the plan cannot be cashed in before age 18, it can only be transferred.

We have classified this account as 4 out of 7, which is “medium” risk class. This rates potential losses from future performance at a medium level.

The risk category is not guaranteed and may shift over time.

On closing the Junior ISA you would receive the current value of units. On death, you would receive the same with a guaranteed minimum of 101% of the current value.

The risk indicator is based on historical data and may not be relied upon to gauge the future risk profile of the product.

Q.8 What might my child get back?

The illustrations below give a guide to how much your investment could be worth in the years ahead in accordance with requirements set by the Financial Conduct Authority (FCA) for illustration purposes. What you will receive depends on how much is invested, the actual rate at which the investment grows and the tax treatment of the investment.

 A. Regular monthly payments

Assuming that £25 per month is invested for 17 years, the table below shows how much your investment would be worth, after charges, if it grows each year by:







B. Lump sum investment payments

Assuming that a single payment of £3,000 is invested for 17 years, the table below shows how much your investment would be worth, after charges, if it grows each year by:







Please note that for both illustrations:

These figures are only examples and are not guaranteed. What you will get back depends on how your investment grows and the tax treatment of the investment. You could get back more or less than the figures quoted.

Do not forget that inflation will reduce what your child can buy with the proceeds of their Junior ISA in the future.

Q.9 What are the charges?

We will take a management charge equivalent to 1% per annum of the Fund. A proportion of this charge is deducted weekly from the value of the Fund; it is the only charge made by us on the Junior ISA.

For example, if the value of the Fund was £1,000 throughout the year, we would deduct £10 in charges for that year.

Other charges may apply as outlined in section 16 of the Terms & Conditions.

Q.10 What happens at age 18?

The money in your child’s Junior ISA will be available to them on their 18th birthday.

The money cannot be kept in the Junior ISA after reaching age 18, but can be re-invested into an adult ISA if they wish. Verification of the child’s identity may be performed at this time.

Q.11 Can I cash-in the account?

No one can access the money in the Account before your child reaches age 18, except in certain exceptional circumstances.

Q.12 What happens if my child dies or becomes terminally ill?

If your child should die before their 18th birthday, 101% of the value of the Junior ISA on the date of death will be paid to the child’s estate.

If your child becomes terminally ill before their 18th birthday, it may be possible to withdraw money from the Account for the benefit of the child, subject to the consent of HMRC. A person is considered to be ‘terminally ill’ when the life expectancy is estimated to be six months or less.

Q.13 Can I transfer my child's Junior ISA or CTF?

Yes, you can transfer your child’s Junior ISA or CTF investment to us and we will not make a charge.

To do this, the registered contact will need to complete a transfer form. This can be obtained by calling us on 0151 724 1930.

When we receive this we will contact the other provider once any cancellation period has expired.

Q.14 Can I transfer my child's Junior ISA to another provider?

Your child’s investment in our Junior ISA can only be transferred to another Junior ISA provider.

Q.15 What is the tax situation?

All investment growth generated by Junior ISA investments is exempt from income tax and capital gains tax for UK residents. The proceeds of the Junior ISA, which will be paid out on the child’s 18th birthday, will be tax free as long as they are resident in the UK.

Tax could be payable on any income earned or gains realised by investments still held in the child’s name after their 18th birthday, or after their death if they die before the age of 18.

Taxes and legislation may change in the future. The information given here is based on our understanding of the current situation at the date of publication. If you have any queries or concerns about your personal tax position we recommend you consult your local tax office or a financial adviser.

Q.16 What happens if Unity Mutual is unable to pay out?

We are covered by the Financial Services Compensation Scheme. If we cannot meet our obligations you may be entitled to compensation under the scheme.

This is an investment product, which means the child is entitled to 100% of the first £50,000 invested.

Further information on the scheme can be obtained from the Financial Services Compensation Scheme.

Tel: 0800 678 1100

Unity Mutual ISA Equity Fund - Performance over the last 12 months
Take a look at how our Unity Mutual Equity Fund has performed over the last 12 months, which is the fund this ISA invests in. The performance is tracked on monthly intervals. Hover over each point to see the unit value at that time.
Current Price: 1.799
Unity Mutual ISA Equity Fund - Historical Performance
Take a look at how our Unity Mutual Equity Fund has performed over the last few years, which is the fund this ISA invests in. The performance is tracked over six-monthly intervals. Hover over each point to see the unit value at that time.
Current Price: 1.799

How much could your child get?

The stock market is unpredictable, which is why Stocks & Shares accounts tend to perform better if they’re a medium to long term investment. It’s important to acknowledge before you apply that there is a possibility of getting back less than you put in.

Adjust the sliders to get an idea of the type of returns your child could be looking at, depending on different monthly payments, initial lump sum and investment period.

These figures are only examples and aren’t guaranteed, please note past performance is no indication of future performance.

What your child gets back depends on how your investment grows, your child could get back more or less than the figures shown.

The rates of growth give you a rough guide as to how much your investment could be worth in years to come, in accordance with the Financial Conduct Authority (FCA) requirements.

Select initial investment amount


Select how much you would like to invest each month


Select age of child

Age of child

Low growth rate (3.67%) potential return


Medium growth rate (6.67%) potential return


High growth rate (9.67%) potential return


If you need financial advice

If you’re in any doubt about whether this product is right for you, it’s a good idea to talk to an Independent Financial Advisor (IFA). You can find a local financial advisor by visiting You may need to pay for a financial advisor’s help, so make sure you ask them about their fees first.

Terms and conditions apply to our Stocks & Shares Junior ISA. For more information read the product’s Terms & Conditions, the Stocks & Shares Junior ISA Key Information Document (regular premium) and/or the Stocks & Shares Junior ISA Key Information Document (single premium), and the Services & Costs Disclosure Document.

Ready to apply?

If you’ve read through everything and you’re happy our Stocks & Shares Junior ISA is what you’re looking for, let’s get your application started.

Apply now

*Terms and Conditions apply