Junior Cash ISA

Interest rates are variable. These interest rates are correct as at 13 February 2012.

• Junior ISAs are for children under 18, unless they are eligible for a Child Trust Fund. Is your child eligible for a Child Trust Fund? If your child was born between 1 September 2002 and 2 January 2011, they won’t be able to open a Junior Cash ISA unless they were born abroad during this time and are now a resident of the UK.
• The tax-free savings limit for Junior ISAs is £3,720, the same as for existing Child Trust Funds. The limits will stay in line with each other as they are reviewed each year.
• You can save up to £3,720 tax-free for your child during this tax year. If you also have a junior stocks and shares ISA, the allowance will be less depending on how much you have invested in that.
• Anyone can deposit money until the allowance is reached. Deposits will be treated as a gift to the child, and can’t be returned to the giver even when the account matures.
• When the child reaches 18, the account will mature into an adult cash ISA. They can then either withdraw the money, transfer it to a new ISA or close the account.
• No withdrawals can be made until the child is 18, except in exceptional circumstances, for example the child becoming terminally ill or dying.
• If the child is under 16, the account must be opened in their name by a person over 16 who has parental responsibility for them. If they are 16 or 17, the account must be opened in their name only.
• Between 16 and 18, a child can hold both a Junior ISA and an adult ISA at the same time. Separate limits will apply. When the child reaches 18, their Junior ISA will convert to an adult ISA, and a single adult limit will apply to all their ISA savings.
• There are two types of Junior ISA – Junior Cash ISA and Junior Stocks and Shares ISA. Only the Junior Cash ISA is currently offered by Lloyds TSB. Your child can hold one of each type – ie they can’t have multiple Junior cash ISAs or stocks and shares ISAs with different providers. However, they can transfer money between different Junior ISAs, and move their existing ISAs between different providers.

Apply in branch

Visit your local branch with proof of identity for you and the child and we'll open the account for you.

1.  What terms make up this agreement?
This agreement is made up of these terms and those set out in the:

• Personal Banking Terms and Conditions; and the
• Banking Charges Guide.

If there’s any conflict between any of the terms below and those referred to above, the terms below will apply.

2.  What is a Junior Cash ISA Account?
It’s a children’s savings account with a variable interest rate and special tax treatment. The account is in the name of the child but must be opened and operated by a Registered Contact. We explain in these conditions who can be a Registered Contact. The account is a ‘restricted account’ for the purposes of making changes to these conditions or the account’s interest rate (see 15.10 of the Personal Banking Terms and Conditions).

3. Who is the agreement between?
The Registered Contact and Lloyds TSB Bank plc, unless the account has been opened in Scotland when it will be with Lloyds TSB Scotland plc (referred to as ‘we’, ‘us’ or ‘the bank’ in these conditions). Both banks are registered as ISA managers with HM Revenue & Customs (HMRC).

4. Who can hold a Junior Cash ISA account?
To hold a Junior Cash ISA a child must be under 18. When the application to open the account is made, the child must be either resident and ordinarily resident in the United Kingdom for tax purposes or subject to United Kingdom tax under section 28 of the Income Tax (Earnings and Pensions) Act 2003, or married to, or in a civil partnership with, or a dependant of such a person. We are required to provide details of all junior ISA holders to HMRC.

A child that has or was entitled to have a Child Trust Fund cannot hold a Junior ISA.

5. Who owns the money in the Junior Cash ISA?
All money paid into the account belongs to the child. The money in the account cannot be used to pay other debts owed to us and the account cannot be transferred.

6. How many Junior Cash ISAs can a child have?
Only one. A child can hold a junior cash ISA and a junior stocks and shares ISA. From the age of 16 up to their 18th birthday a child can hold a cash ISA and a junior cash ISA and make payments into both accounts up to the relevant yearly allowances.

7. How much money can be paid into a Junior Cash ISA?
Payments into the account can only be made up to the yearly junior ISA allowance set by HMRC. To find out the latest allowance contact us or HMRC.

OPENING AND OPERATING A JUNIOR CASH ISA ACCOUNT

8. Where can I open a Junior Cash ISA Account?
In any Lloyds TSB branch.

9. Who can open a Junior Cash ISA?
If a child is under 16 a person who has parental responsibility for the child must open the account as the Registered Contact. The Registered Contact must be 16 or over when they apply to open an account. Between the ages of 16 and 18 a child can open the account themselves as Registered Contact.

10. When will the Junior Cash ISA be open?
The account will start from:

• the date of the first deposit (which must be at least £1) providing we have a valid application form; or
• if you are transferring a junior cash ISA from another provider, the day we receive the transferred funds. We will pay interest on transferred funds from the date we receive a completed transfer form, provided your funds are free to move.

11. Who will manage the Junior Cash ISA?
Where the Registered Contact has parental responsibility for the child they will manage the account until it matures when the child turns 18, unless the child tells us that they want to become the Registered Contact after they have turned 16. A child who opens an account as Registered Contact can manage the account themselves.

12. Can a child ask to take over managing the Junior Cash ISA themselves?
Yes. From the age of 16 the child can at any time contact one of our branches and ask to be made the Registered Contact for the account. They do not need the agreement of the existing Registered Contact. We will write to the Registered Contact before the child turns 16 to explain the steps the child will need to take to become the Registered Contact. This will include providing evidence of their identity and completing an application form.

13. Can anyone else take over the management of the Junior Cash ISA?
Yes. Where the existing Registered Contact agrees, another person with parental responsibility for the child can become the Registered Contact. We can also change the Registered Contact without consent where the existing Registered Contact has died or becomes incapacitated, no longer has parental responsibility for the child, can no longer be contacted or because of a court or equivalent order.

14. How can the Registered Contact manage the Junior Cash ISA?
Queries and instructions about the account can be made at any of our branches.

15. What information will be sent to the Registered Contact about the Junior Cash ISA?
We will send a statement each year showing transactions up to and including 5th April. Duplicate statements can be requested, there is no charge for these.

DEPOSITS, WITHDRAWALS AND TRANSFERS

16. Who can make payments into a Junior Cash ISA?
Anyone can make payments into the account up to the yearly junior ISA allowance. Payments made into a junior ISA are gifts to the child and cannot be returned, even when the account matures.

17. How can payments be made into a Junior Cash ISA?
Payments can be made into the account at any time by:

• transferring the whole of a junior cash ISA account with us or with another junior ISA manager;
• transferring the whole or part of  a stocks and shares junior ISA held with us  or with another junior ISA manager;
• paying money into the account at any branch; or
• transferring money into the account from another account.

Regular monthly payments in can be made by standing order from an account which is held by us yearly or another bank or building society.

18. What happens if payments into the Junior Cash ISA exceed the yearly junior ISA allowance?
If payments in a particular tax year   reach the yearly allowance we will not accept any further payments during that tax year. Payments in excess of the yearly allowance will be refused if made in branch or returned using the same method by which they have been paid, for example, standing orders will be returned by electronic payment. The Registered Contact agrees in these circumstances to us explaining to anyone wishing to make a payment into the account that the allowance has been reached and further payments can’t be accepted.

19. Can payments into the account still be made if the child moves abroad?
Yes.

20. Can funds be transferred from another junior ISA with us or another provider into the Junior Cash ISA?
Yes, it’s possible to transfer:

• the whole of the account balance (deposits and interest) of a junior cash ISA with us or with another ISA provider;
• all of the payments made to the account (deposits and interest) during the current tax year, and the whole or part of the account balance (deposits and interest) from a previous tax year or years from a junior stocks and shares ISA with us or with another ISA provider.

We will pay interest on amounts transferred from the date we receive a completed application form, providing your funds are free to move.

21. Can funds be transferred from a Junior Cash ISA into another junior ISA with us or another provider?
Yes, it’s possible to transfer:

• the whole of the account balance (deposits and interest) to a junior cash ISA with us or with another ISA  provider;
• all of the payments made to the account (deposits and interest) during the current tax year, and the whole or part of the account balance (deposits and interest) from a previous tax year or years to a junior stocks and shares ISA  with us or with another ISA provider. If all of the balance in a junior cash ISA is transferred into a junior stocks and shares ISA another junior cash ISA can be opened as long as payments in do not exceed the yearly allowance.

The Registered Contact must complete a transfer application with the new provider who will send the transfer application to us. Within 5 working days of receiving the transfer application from the new provider, we will send the child’s money and information to the new provider.

22. Can funds be transferred to or from a Child Trust Fund or from a cash ISA?
No.

23. Can funds be withdrawn from a Junior Cash ISA?
Other than transfers to another junior ISA, no withdrawals can be made from the account until the child is 18, except if they become terminally ill or die.

If the child becomes terminally ill and the Registered Contact wishes to withdraw funds from the account the Registered Contact must make an application to HMRC (further information can be obtained at www.hmrc.gov.uk). If the application is accepted HMRC will notify us and the Registered Contact. We may ask to see HMRC’s letter of consent before we allow any funds to be withdrawn. If the account is closed in these circumstances interest earned up to the date of closure will be paid tax free.

INTEREST

24.  How is interest paid?
We’ll pay interest once a year on 31 March or, if that is not a working day, the next working day. If there is less than £1 in the account we will not pay interest on the amount in the account until the balance is increased above the £1 limit.

25. How can I find out what the interest rate is?
You can find out by either asking in branch, looking online at www.lloydstsb.com, or by phoning us on 0845 300 0352.

26. Do you take tax off the interest that you pay on the Junior Cash ISA?
As long as the child and the account continue to qualify, interest will be paid tax-free.

27. Can the interest rate change?
The account pays a variable rate of interest – this means that as long as we let you know we can change the rate of interest we pay on the money held in the account. For further details about how we do this, please read the Personal Banking Terms and Conditions.

28. What happens if the Government changes the ISA Regulations?
Any changes made to ISA Regulations that affect these conditions will apply as soon as they come into force. Favourable tax treatment for ISAs may not be maintained (the Government is responsible for decisions about tax treatment).

29. Can the Junior Cash ISA lose its tax free status?
Yes. The account will no longer qualify as a cash ISA, and we will deduct income tax from the interest earned:

• if the declarations that were made when  the account was applied for are or become untrue;
• from the date of the child’s death; or
• if HMRC instruct us accordingly.

The account will not lose its tax free status if, after the account is opened, the child moves abroad.

We will notify the Registered Contact if the account becomes or will become subject to the deduction of tax. We will deduct income tax at the appropriate rate from the interest earned, including any interest already paid. We will take this amount from the money in the account before we pay the balance over to the child.

THE END OF A JUNIOR CASH ISA ACCOUNT

30. What happens when the child reaches 18?
The account will automatically become an instant access cash ISA (or another instant access account if this is no longer available). The child can withdraw matured funds from this account but will have to provide evidence of their identity in order to do so if they are not the Registered Contact when the account matures. We will write to the Registered Contact and the child (if different) before the child turns 18 with more details about the account that the Junior Cash ISA will mature into, how to withdraw funds or transfer them to another ISA provider and the steps the child needs to take to activate their cash ISA account.

New funds cannot be added to the cash ISA until the activation process has been completed. If when the child reaches 18 the Junior Cash ISA has no money in it we will close the account and not convert it to a cash ISA.  We will not give advance notice when we do this.

31. Can the Junior Cash ISA be closed before the child turns 18?
Other than when the funds are transferred to another junior ISA (see 21 above) or the child becomes terminally ill (see 23 above) or dies, the account cannot be closed.

If the child dies, the account balance will normally be paid to their estate. When we receive notice of the child’s death we will close the account and pay any interest earned up to the date of death tax free. We will transfer the balance to a standard instant access account and provide details of this new account to those people responsible for the child’s estate.

CANCELLATION

32. Can the account be cancelled?
Yes. The account can be cancelled at any time before the end of the 14-day period starting on the day the account is opened. If the account is cancelled payments can be made into another junior ISA in the child’s name and payments made to the cancelled account will not count towards the child’s yearly allowance. If the account is cancelled we will repay the balance (including any interest earned) to the Registered Contact. To cancel this agreement the Registered Contact should speak to one of our branches. There are no charges for cancelling a Junior Cash ISA and no advance notice is required.