My Choice (Junior ISA)

Build a tax-free lump sum for your children

Start today from just £10 a month.

My Choice Junior ISA

If you’d like to put some money aside for your child’s future, Scottish Friendly’s My Choice (Junior ISA) could be the plan for you.

Because we believe investing should be open to all, you can start from just £10 a month. You can change or stop your payments anytime too, so it’s incredibly flexible.

The My Choice (Junior ISA) is long term tax-free investment for children under 18 who didn’t qualify for a Child Trust Fund. The table below shows a summary of the plan and there’s more information on the detail tab.

Investment features What you need to consider
  • Invest tax-free from £10 a month or a £50 lump sum — or a mix of both.
  • You can raise, lower, stop and restart your payments any time you like.
  • Your money will be invested in a My Choice policy within a Scottish Friendly Junior ISA which invests in your choice of funds. For more detail see the Fund tab.
  • Your child can have a Scottish Friendly My Choice (Junior ISA) as well as a Cash Junior ISA.
  • The value of your investments can fall as well as rise, so your child could get back less than you paid in.
  • The fund aims to grow your money over time on the stock market, so it should be considered as a long-term investment.
  • Once set up, you can’t take out another Investment Junior ISA, but can switch your fund to a different one with another manager. 
  • Money in a My Choice (Junior ISA) belongs to the child. They can only withdraw it when they reach 18.

Tax Information

Tax Information
  • Tax treatment depends on individual circumstances. Tax law may change in the future.
  • Tax-free means the policy grows free of income and capital gains tax (other than tax on dividends from UK shares).
  • You can invest up to £4,080 in the current tax year for your child in an Investment Junior ISA, less any amount subscribed to a Cash Junior ISA with another ISA manager.
  • Available to children under 18 and resident in the UK who didn't qualify for a Child Trust Fund.
 

No advice has been provided by Scottish Friendly in relation to this plan. If you are in any doubt as to whether this plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any cost beforehand.


Flexible and tax-free

At Scottish Friendly, we think everyone should be able to invest if they want to. So with our My Choice (Junior ISA), you can start building a tax-free lump sum for your child’s future from just £10 a month.

It’s never too soon to start investing for your child's future. Your child’s 18th birthday may seem like a long way off, but starting to put some money aside now makes good financial sense. As a flexible, long term tax-free investment, My Choice (Junior ISA) could help pay towards anything from university fees to their first car.

 

Protect their investment from the taxman

Available for children under 18 who didn’t qualify for a Child Trust Fund, My Choice (Junior ISA) is a policy within a Scottish Friendly Junior Individual Savings Account (JISA) that invests in a choice of funds, including stock market and bond funds. By putting money away in a My Choice (Junior ISA), you’re sheltering your child’s investment from the taxman as it’s free from income tax and capital gains tax (other than tax on dividends from UK shares). Bear in mind that tax laws could change in the future and tax treatment depends on individual circumstances.


Pay monthly or in lump sums – you decide

How you invest is up to you. If you’d like to put a small amount away every month, you can start from just £10 and to make things easy, we can set up a regular Direct Debit. If you’d prefer to pay in lump sums, any amount between £50 and £4,080 in this tax year is allowed. But remember that £4,080 is the maximum annual limit, so if you’re saving in a Cash Junior ISA with another Junior ISA manager too, this limit will be reduced.


All the flexibility you need

You can raise or lower the amount you’re paying in any time you like. If you’d like to take a break, that’s OK too – just re-start when you’re ready. Of course, if you’re investing for a certain goal, then stopping your payments will mean it takes you longer to reach it. It’s also important to remember that you’re aiming to grow a lump sum for your child using the long-term growth potential of the stock market, so you should think about My Choice (Junior ISA) as a long-term investment.

You can also automatically raise your payments by an agreed amount every year — e.g. 2.5%, 5% or 10% — this is known as your yearly payment increase rate.

The tool below lets you see the effect on your monthly premium each year over a 10 year period. Remember your monthly premium will continue to increase past year 10, however you have the option to change the yearly payment increase rate at any time.

 

Anyone can pay money in

Once My Choice (Junior ISA) has been set up by a parent or guardian, anyone can pay into it — be it grandparents, aunts and uncles, or family friends. Remember that My Choice (Junior ISA) belongs to the child and only they can withdraw the money, so all payments are basically a gift to the child and cannot be returned. The child can manage the account from age 16 but won’t be able to take money out until on or after their 18th birthday.


A policy for all your child’s goals

My Choice (Junior ISA) is a little different from other child investments. The main difference is that, instead of one big pot, separate individual policies can be set up within it. Each policy can have its own description, e.g. ‘Gift From Granny’, ‘Uncle Allan’s Uni Fund’ or ‘Flat Deposit’. As long as you stay within their annual allowance, you can have as many policies as you like for your child – for whatever you like.


Parental control over how the money is invested

With My Choice (Junior ISA), the child’s parent or guardian has a say in how the money is invested. For every individual policy within it, the parent or guardian of the child can choose from a range of funds, each with a different level of risk and reward. That way, it’s possible to pick the type of funds that suit the investment goals for the child best. Remember though, that no matter which fund is selected, the value of the investment can go down as well as up and the child could get back less than has been paid in.


Open a Scottish Friendly My Choice (Junior ISA)

Opening a My Choice (Junior ISA) with Scottish Friendly is easy.

Before you apply, make sure you’ve read the relevant Key Features. Then you’re ready to apply online.

Once you’ve applied, we suggest printing or saving a copy of this page, other relevant pages and the relevant Key Features. That way, they will always be handy should you need to refer to them.

Apply Online>

A choice of investment funds

My Choice (Junior ISA) puts the parent or guardian of the child firmly in control of their investment. We offer a range of funds so it’s possible to choose the ones that suit your child’s needs best.

Remember though no matter which fund or funds are selected, the value of the My Choice (Junior ISA) can go down as well as up and your original investment is not guaranteed.


How the funds compare

The funds available to you have a range of objectives and risk and reward profiles. Some funds invest in particular sectors such as UK Government Bonds or the UK Stock market. Others invest in a mix of assets some of which are specifically risk and return graded to help you match your own risk and reward profile to your choice of investment fund.

You can find much more information on each of these funds below but the diagram below lets you see how we expect the funds to compare against one another in terms or expected risk and return.

Low expected
risk & return

 

High expected
risk & return

For more information on our how much your investment could be worth in the future within each of the funds, please click on the How their money could grow tab.


Funds

Further information on each of the funds can be found below.

  • UK Tracker fund

     

    UK Tracker fund benefits What you need to consider
    • A higher risk and reward investment linked to an index of the UK stock market. It is designed to link to well-known high street brands and companies listed in the UK.
    • Give your money the long term growth potential of the UK stock market.
    • Your cash in value can rise and fall on a daily basis and the child could get back less than you have paid in.
    • The fund's performance will be mainly dependent on the movement in the UK stock market.
  • UK Active fund

    UK Active fund benefits What you need to consider
    • A higher risk and reward investment linked to an actively managed investment in UK stocks and shares.
    • Give your money the long term growth potential of the UK stock market, where stocks and shares are selected by an expert fund manager who will aim to outperform the market.
    • Your cash in value can rise and fall on a daily basis and the child could get back less than you have paid in.
    • Your fund's performance will largely depend on the movement in the UK stock market but will also be dependent on the ability of the fund manager to select stocks and shares that grow.
  • UK Government Bond fund

    UK Government Bond fund benefits What you need to consider
    • A lower risk and reward investment linked to an index of bonds issued by the UK Government.
    • Give your money the growth potential and security of long term bonds issued by the UK Government.
    • Your cash in value can rise and fall on a daily basis and the child could get back less than you have paid in.
    • Your fund's performance will mainly depend on the credit worthiness of the UK Government and the movement in long term interest rates which can raise and lower the value of bonds held in the fund.
  • International Company Bond fund

    International Company Bond fund benefits What you need to consider
    • A medium risk and reward investment linked to a portfolio of bonds issued by companies throughout the world, selected by an expert fund manager.
    • Give your money the growth potential and security of long term bonds issued by companies throughout the world.
    • Your cash in value can rise and fall on a daily basis and the child could get back less than you have paid in.
    • Your fund's performance will depend on the credit worthiness of the company bonds purchased by the fund manager, the movement in long term interest rates and the movement in currency exchange rates.
  • Unitised With-Profits fund

    Unitised With-Profits fund benefits What you need to consider
    • The Unitised With-Profits fund is linked to a cautiously managed portfolio of stock market, property, cash and bond assets.
    • Provided you haven't switched out of the fund, if the child’s policy is cashed in only on the 10th anniversary of your continuous investment in the Unitised With-Profits fund they will receive a guaranteed cash sum of at least as much as you have invested less your policy charges.
    • When the child’s policy is cashed in or switched out of the Unitised With-Profits fund they will receive a value which is in line with the performance of the assets within the fund. This is done by adding a final bonus or deducting a market value reduction.
    • No market value reduction can apply on the 10 year anniversary of your continuous investment in the Unitised With-Profits fund which provides your guaranteed value.
    • Continuous investment means you have maintained at least one full unit in the Unitised With-Profits fund and is measured from the first day you invest.
  • Higher fund

    Higher fund benefits What you need to consider
    • A higher risk and reward investment linked to a managed basket of assets with emphasis on higher long term expected return assets such as the stock market.
    • Higher longer term growth potential than a cash based investment and better potential than the Lower fund or Medium fund.
    • Your cash in value can rise and fall on a daily basis and the child could get back less than you have paid in.
    • The fund contains a higher degree of risk than an investment in the Lower or Medium fund which means that it is likely to experience greater price rises and falls than the Lower or Medium fund.
    • The actual risk and return of the fund will depend on Scottish Friendly's ability to efficiently allocate investments to meet the risk profile of the fund.
  • Medium fund

    Medium fund benefits What you need to consider
    • An investment linked to a managed basket of assets designed which tends to favour assets such as the stock market and property which have greater levels of potential risk and return.
    • Greater longer term growth potential than a cash based investment and better potential then the Lower fund but less than that of the Higher fund.
    • Your cash in value can rise and fall on a daily basis and the child could get back less than you have paid in.
    • The fund contains a greater level of risk than the Lower fund but less than the Higher fund. This means that the Medium Fund is likely to experience greater levels of price rises and falls than the Lower fund.
    • The actual risk and return of the fund will depend on Scottish Friendly's ability to efficiently allocate investments to meet the risk profile of the fund.
  • Lower fund

    Lower fund benefits What you need to consider
    • A lower risk and reward investment linked to a managed basket of assets with emphasis on safer assets such as bonds and cash.
    • Greater longer term growth potential than a cash based investment.
    • Your cash in value can rise and fall on a daily basis and the child could get back less than you have paid in.
    • Whilst the fund contains an element of risk it is lower than that of the Higher or Medium fund. This means that the fund is likely to experience a lesser level of price rises and falls than the Higher or Medium Fund.
    • The actual risk and return of the fund will depend on Scottish Friendly's ability to efficiently allocate investments to meet the risk profile of the fund.

Start now from just £10 a month

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What might the child get back from the policy?

It’s impossible to tell you the exact return your child may get in the future but we can give you a rough idea. Take a look at what they might get back if you start a My Choice (Junior ISA) with Scottish Friendly within each of the funds available.

If you would like to make a lump sum investment you can see an example of what the child might get back in the Key Features.

Select a fund from the drop down menu below, use the sliders and click Calculate to see what the child might get back for each fund available within a My Choice (Junior ISA).


 

Start now from just £10 a month

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