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Child savings

Investing for the next generation

It’s natural to want to provide for your child financially. We can help.

There are many ways you can save and invest for children. From a simple savings account to a pension. It’s something other family members often want to get involved in too and the earlier you start the more your child could stand to gain.

At Alliance Trust Savings you have a choice of three different investment based Accounts to suit your needs. To help you decide, here’s a quick overview.


Junior ISA Child SIPP First steps IDA
Is it tax-efficient?
How much can I invest? Up to £4,260
for the 2018/2019 tax year
Up to £2,880*
for the 2018/2019 tax year
No limits
Can I transfer in other accounts?
Who controls the account? Named adult, until the child reaches age 18 Named adult, until the child reaches age 18 Account holder (you, the adult)
  Apply Apply Apply

*This will result in £3,600 maximum contribution after tax relief.

Remember the value of your child’s investments can go down as well as up and they may get back less than the amount you invested. All investments carry an element of risk which may differ significantly. Tax rules may change in the future and taxation will depend on your child’s personal circumstances. The information here is our understanding in May 2018.

A SIPP requires active management and investment expertise. Your child cannot normally take any money out of it until they reach age 55 and you and they (when they reach 18) should make sure their investments are reviewed regularly. If you are unsure as to the suitability of a SIPP or any particular investment you might be considering for your child, you should speak to a Financial Adviser.


Is it right for me?

  • A Junior ISA may be suitable if you are comfortable that the child can access their money at age 18.
  • A Child SIPP may be suitable if you want to get your child’s retirement savings off to a head start and are happy for them to control their SIPP from age 18.
  • A First Step Investment Account may be suitable if you want to stay in control of your child’s savings until you are ready to give them access. You are comfortable to forgo the tax advantages of a Junior ISA or Child SIPP.
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Why invest with Alliance Trust Savings?

Flat Account Fees that won’t grow with your investments. Please see our Charges Guide for more information on account fees

24/7 online access to your Account

Over 4,000 investments to choose from

Real-time trading in UK listed securities

Regular, monthly investing for just £1.50 a trade (Terms and Conditions apply)

Minimum investment of just £50

Find out more

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Four easy steps to open a Child Account

1

Decide which Child Account is right for you

2

Decide how much you want to invest

3

Choose your investments

4

Read the important documents and apply

FAQs and resources

Who can open a Child Account

Who can open a Junior ISA?

You can open a Junior ISA If you are 18 or over, resident in the UK and the parent or guardian of the child. A child aged 16 to 18 can also open a Junior ISA.

Once the Account is open, anyone can pay in.

Minimum payment is £50 (one-off or regular payment).

Maximum payment amount for 2018/2019 tax year tax year is £4,260.


Who can open a Child SIPP?

You can open a Child SIPP If you are 18 or over, resident in the UK and the parent or guardian of the child.

Once the Account is open, anyone can pay in.

Minimum payment is £50 (either as a one-off or regular payment).

The maximum amount you can invest for the 2018/2019 tax year is £3,600 including tax relief.


Who can open a First Steps IDA?

You can open a First Steps IDA If you are 18 or over, resident in the UK. You don’t have to be the parent or guardian of the child to open a First Steps IDA.

Once the Account is open, anyone can pay in.

Minimum payment is £50 (either as a one-off or regular payment).

There is no maximum payment amount.


Opening a Child Account

How do I open a Junior ISA?

The quickest, cheapest and easiest way to open a Junior ISA with us is online using our secure service. You can also apply by post by downloading our Junior ISA application form or through your Financial Adviser.


How do I open a Child SIPP?

You can apply by post by downloading our Child SIPP application form or through your Financial Adviser.


How do I open a First Step IDA?

You can apply by post by downloading our First Step IDA application form or through your Financial Adviser.


Do you accept applications from the US?

We don’t accept applications by or on behalf of any US persons.


Paying In

What payment methods do you accept?

Debit card, direct debit (for regular payments) and cheque. We’ll send you a password and Personal ID to use on our secure online service, where you (or your adviser) can manage your account, including the payments you make.


Transferring In

Can I transfer a Junior ISA to Alliance Trust Savings?

You can transfer Junior ISAs from other providers and Child Trust Funds into your Junior ISA with us. You may be out of the market for a time during the transfer.


Can I transfer a Child SIPP to Alliance Trust Savings?

You may be able to transfer child savings from another registered pension scheme to your Child SIPP with us. You may be out of the market for a time during the transfer.


Can I transfer a Child IDA to Alliance Trust Savings?

You can transfer investments from elsewhere without selling them first so long as we offer them through our First Steps IDA.


We charge flat fees that don’t grow with your investments, making our charges very competitive for larger investment pots.

Your current provider might charge you for transferring.


Control

Who does the Junior ISA belong to?

The child. They can control the investments from age 16 but can’t access them until age of 18 when the Junior ISA becomes an adult ISA in their name.


Who does the Child SIPP belong to?

The child. They can control the investments from age 18 but, based on current tax and pension rules, won’t be able to access them until they are at least 55.


Who does the First Steps IDA belong to?

The adult who opens the account. You can think of a First Steps IDA as a way to hold and track investments you are making for a child separately from your own.



Charges

What are the charges?

All our child accounts are offered at a significantly reduced account fee compared to their adult equivalent. When a child reaches 18, we convert the child account to its adult equivalent automatically and the charges go up to the adult rate.

See our charges section for more information.


Tax

Are there any Tax advantages to Junior ISAs?

There is no tax to pay on income or investment growth inside a Junior ISA.


Are there any Tax advantages to Child SIPPs?

There is no tax to pay on income or investment growth inside a Child SIPP.

Payments in also benefit from tax relief. To reach the £3,600 maximum payment in each year, only £2,880 has to be paid in directly. The rest (£720) is paid in as tax relief which we claim on your behalf.


Are there any Tax advantages to First Steps IDAs?

There are no tax advantages.


Keeping Track

How often will I get valuation and statements?

We send you statement and valuation reports in line with regulations and you’ll be able to check the current value of your Child Account online at any time.


Forms and Documents

To view all Child Account literature and forms, simply click on the button below:

Child literature

Alliance Trust Savings Limited is a subsidiary of Alliance Trust PLC and is registered in Scotland No. SC 98767, registered office, PO Box 164, 8 West Marketgait, Dundee DD1 9YP; is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 116115. Alliance Trust Savings gives no financial or investment advice.