A mother has said it is 'heartbreaking' that she must spend £2,309 to access the £7,000 locked in her disabled son's Junior ISA (JISA). Rhiannon Gogh, 48, a financial planner from Somerset, opened the account for her son Tristan, who is 16, but only recently discovered the high cost of withdrawing the funds when he turns 18.
A JISA is a long-term, tax-free savings account for children. The child can take control at 16 and withdraw money at 18. However, if the account is held with a provider that charges exit fees or requires a specific process, accessing the cash can be expensive. In this case, the fee is £2,309, which would consume nearly a third of the balance.
Ms Gogh admitted that despite her professional background, she was unaware of the charge. She described the situation as 'heartbreaking' and called for greater transparency from financial institutions regarding JISA terms and conditions.
The case highlights a broader issue: many parents may not realise that some Junior ISAs carry significant exit penalties. Financial experts advise checking the terms of any JISA before opening it, and considering providers that offer penalty-free withdrawals at age 18.
