Junior ISA

Is the Moneybox Junior ISA protected by the Financial Services Compensation Scheme (FSCS)?

Yes. The Financial Services Compensation Scheme (FSCS) has been set up to deal with compensation if firms are unable to meet claims made against them. The maximum claim that could be made under the Moneybox Junior ISA is £85,000. In addition, if any of the banks which are used for depositing cash balances are declared in default, each individual is entitled to 100% of the first £85,000 in total, in compensation for losses across all their deposits with that bank.

In the unlikely event that your child was to suffer financial loss directly because a fund manager of a Unit Trust or OEIC became insolvent, you will be able to claim under the investment business section of the FSCS. Each FCA authorised UK based fund manager will qualify for the investment element of the FSCS. If a fund manager becomes insolvent and is unable to return the money, your child will be protected for 100% of the first £85,000 held within it.

Further information about the compensation arrangements is available from the Financial Services Compensation Scheme at www.fscs.org.uk

Please note that the compensation schemes described above do not cover a fall in the value of the Junior ISA investments.

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It's important you know

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

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