Accessing money in a Junior ISA early

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We're thinking of opening a Junior ISA for our 17 month old daughter. What puts me off slightly is the thought that that money can't be touched for 18 years. What happens if our daughter were to need expensive medical care or we run into money difficulties ourselves and we have £1000's in an account we can't touch.

Is there a way to access this money in such circumstances?

Don't save it in her name. Open a regular ISA account in your name, which you know you'll keep aside for her.

Surely the point of having this in the child's name
Is so that it can't be touched if you run into. Obey worries? Can't be taken into account for benefits or bankruptcy etc.

*money worries

No way to access it unless exceptional circumstances such as the death of the child.

This worried me too. So I opened a 4.5 percent interest account with Halifax where you save max £100 a month for 12 months (but no withdrawals) , and then it automatically goes into a 2.0 percent interest account that is more accessible. Each year I am able to save 1200 at 4.5 percent for him and then it goes into his 2.0 account. The 4.5 account just continues each year (I thought it was only for 1 year).
My DS is nearly 5 and already has Alot more savings that I do. I have always saved for him each month and I am proud to say I've never had to delve into it as it really would be in exceptional circumstances that I would have to. But having his money in the accounts I do just makes me feel like I have some breathing space in the event I need to access it

The benefit of accounts in their name are they wouldn’t be taken into account if you become bankrupt/ apply for benefits etc and obviously you don’t get taxed on them

On the flip side that means you can’t remove it early (save in incredibly specific circumstances I think) and it goes straight to the child when they hit 18.

I am saving a small amount into their ISAs (approx £20\month since they were born) but any other savings (even for them) go/ will go elsewhere (and I am focusing on mortgage overpaying in hope of being mortgage free as they start university!)

I'm with @NGC2017 on this one. Open a Halifax Kids Saver, that was you can save monthly at a good rate but also access if needed.

You can access money from a Junior Isa if a child is terminally ill (definition less then 6 months to live). You have to apply to Hmrc.

The benefit of accounts in their name are they wouldn’t be taken into account if you become bankrupt/ apply for benefits etc and obviously you don’t get taxed on them
That applies to a child account that you can withdraw from.

We didn't want a lump sum automatically becoming available at 18 and equally wanted it accessible if necessary (car, travel etc. if DC wishes when older).

We opened a nationwide future saver account. 2.5% interest, in both DH and my name so need two signatures to withdraw, and can make one withdrawal a year without affecting the interest rate (think it drops to 0.5% if 2 withdrawals are made, it goes back up at the anniversary of the account being opened).

We can give DC control of the account at any stage from 7 years+ with no upper age limit, we can keep control of it until DC is 50 if we really wanted.

It's also linked to my own nationwide account so I can just transfer money over, I don't have to go into branch with the little cash book

My dh opened up a junior isa with Halifax online for ds who has asd, severe learning difficulties and is non verbal.

Fast forward a few years and our son turns 18 and his isa matures, unfortunately at the time of opening the account online no ID was required as no withdrawal could be made from the account.
Dh and myself then try to close the account but can’t as we don’t have the relevant ID and my ds is non verbal and can barely write his first name so it didn’t meet their criteria.

We then finally manage to have an appointment with a member of staff who was great and said if we got a doctors letter and he answered the list of questions that they wanted with regards to our son and if we as his parents brought him into the branch along with his birth certificate and national insurance card and if we could get him to sign his first name (as thats all he can do) then they would be happy.

We got the doctors letter and he didn’t charge us for it (Bless him he’s great) we took everything we were asked for and got our ds to sign his first name (worlds biggest signature ) and managed to close the account and moved the funds to a joint bank account with myself.

If we had our time again I wouldn’t.

In our experience the problems start when an 18 year old suddenly aquires a large amount of cash and spends it all in the space of 4 months !!

Thanks for all the replies. Giving a lump sum to an 18-year old was also one of my concerns!

I like the idea of the Nationwide future saver account, this is basically exactly what I was looking for - something that's pays decent interest but we can access in an emergency.

Thanks again :)

Even though you are named as trustee it is important to note that the money in children's accounts is theirs legally and not yours.
To take the money out of the account for your own benefit (as you mentioned in your OP) rather than the childs benefit is against the T&C's (and actually illegal)

I know in reality no one is likely to come knocking but I think it's important to understand that any money in any children's accounts, not just ISA's, legally belongs to that child and not the trustee.

Don't forget the tax aspects as well. If the account is funded by parents ( as opposed to say grandparents) then the parents are taxed on any income ( ie interest) received over £100.
www.gov.uk/savings-for-children

Savings accounts now I think are a complete waste of time. If you open an account in your child name, yes they won't be able to touch the money until they're 18 but isn't that a good thing? Kids should be taught the value of money and learn how to wait IMO.

Just to add to this, I recently opened a Junior ISA account with these guys for my five-year-old and they were super helpful: thechildrensisa.com/. They have a really good FAQ section but you can also call them to check the best option for you.

It’s interesting people’s take on saving. I would hope that you tell your child about a lump sum of money that they should use it sensibly like towards a house, driving lessons or travelling.

@MyDcAreMarvel

The benefit of accounts in their name are they wouldn’t be taken into account if you become bankrupt/ apply for benefits etc and obviously you don’t get taxed on them That applies to a child account that you can withdraw from.

No it doesn’t otherwise a lot of parents would save in regular accounts for their child and claim benefits as well. It has to be an account where only the child can withdraw the money after their 18th birthday

If you make them money literate and they have jobs in sixth form to help them appreciate the value of money then I think theres no problem with them getting money at 18.