Junior ISAs are a brilliant way to save long term for your kids
Junior ISAs, or JISAs for short, are accounts that you can open on your children’s behalf to save for their future. There are two types – a Cash JISA and Stocks & Shares JISA – but how do you open one and what’s the best one to choose?
Below, I’ll explain everything you need to know about Junior ISAs.
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What is a Junior ISA?
A Junior ISA is a savings or investment account designed for parents to save for their kids in the UK.
They’re a brilliant idea if you want to set aside money for your children and the key benefit is that all the interest earned, or returns with the stocks and shares option, is tax-free – much like adult ISAs.
The Cash JISA works much like a savings account while the Stocks & Shares JISA is more like an investment account where the money could be invested in funds, shares or bonds (depending on the provider).
Regardless of which one you choose, the money is tied up until the child turns 18 so no one (not even the parents) can make withdrawals. But when the child is 16 they can manage the account themselves.
Who can open a Junior ISA?
This is strictly a job for the parents or legal guardians if the child is under the age of 16. Once it’s open, anyone can pay into it.
Teenagers who are 16 or 17 years old can open the account themselves.
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- Offerup to £300 in free shares*
- Annual fee£0
- Trading fee£0
- Minimum deposit£0
- FSCS Protected? Yes
- Transfer in existing ISA? Yes
- Interest on uninvested cash 3.75%
- Fractional shares No
- Flexible ISA Yes
- Foreign exchange fee 0.70%
- Fund fees If you invest in funds, you'll have to pay fund fees depending on the funds you choose
- Authorised and regulated by the Financial Conduct Authority Yes: FRN 944492
- Risk warning Capital at risk. The value of investments can go down as well as up.
- Offer Invest a minimum of £300 and get up to £300 in free shares. T&Cs apply. Other fees may apply.
Who manages a Junior ISA?
Up until a child turns 16, the account is managed by the parent or guardian.
From 16, the child can take over the account although they can’t make withdrawals until they turn 18. At this point, the JISA turns into an adult ISA.
Which type of Junior ISA is best?
The JISA you choose will depend on the age of your child, how long you might save for and your attitude towards risk.
Junior Cash ISA:
- Pros
- Straightforward to set up and manage – similar to a savings account
- Value of the pot won’t go down – you’re not at risk of losing any money
- You know how much the money will grow based on the interest rate
- Cons
- Comparably lower interest rates mean you could be missing out on higher returns in the long term
- Unlikely to keep up with inflation so your child’s savings may not buy as much in the future
You might want to consider a cash JISA if you’ve got an older child, say aged 16 or older, who might need the money in a few years. The money is kept in cash so you know how much you have and what you could end up with, based on the interest rate.
Junior Stocks & Shares ISA
- Pros
- Potential to earn higher returns compared to cash if you’ve got more than five years to invest – the longer the better
- More likely to keep up with or beat inflation over time
- Cons
- As with any investment, the value of your money could go up or down – so your child could end up with less than you put in
- Some investment platforms charge fees – and they could quickly add up. However, check out our list of the top stocks and shares JISA providers, including those which are fee-free
If you’ve got at least five years before your child can access the money – so if you’re opening a JISA for a younger child – it’s worth looking at a Stocks & Shares JISA.
A con for both a Cash JISA and Stocks & Shares ISA is that the child gets complete control of the money when they turn 18 – the account changes into an adult ISA in their name. The worry for many parents is that the child can then do whatever they want with a potentially significant sum that’s been carefully set aside for them for many years…
When they were launched, there were also concerns that children with a Junior Stocks & Shares ISA could make some unwise decisions about how their money was invested after they turned 16, although this isn’t something that there has been much evidence of since launch it remains a possibility.
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What do you need to open a Junior ISA?
The process of opening a Junior ISA is basically the same for the cash and investment version – with one extra step for the latter.
You’ll need to:
- Check your eligibility – your child needs to be under 18 and a UK resident
- Choose your provider. If you’re not sure where to start, we’ve listed the top Cash JISA and Stocks & Shares JISA providers on our best buy tables
- Fill in the application form – different providers have different rules and you may be able to do this online, by post or in a branch
- Expect to provide key details such as your National Insurance number and your child’s (if they have one), proof of your identity and the child’s (such as with a passport or birth certificate) your debit card details if you want to pay in a lump sum or your bank details if you want to set up a direct debit
- If you’re opening a Stocks & Shares ISA you’ll then need to pick your investments
Are there any limits on Junior ISAs?
Yes, there are – there are quite a few rules when it comes to Junior ISAs.
Number of JISAs you can have
You can have one Cash Junior ISA and one Stocks & Shares Junior ISA – so two in total. The accounts can be with the same providers or different ones and if you find a better deal, you can transfer your JISA to a new provider whenever you want. But you can’t have a Junior ISA and a Child Trust Fund at the same time.
Annual subscription limit
You’re limited with how much you can pay into a Junior ISA. For the 2026/27 tax year, it’s £9,000. This can be paid into one JISA or split between a Cash and Stocks & Shares JISA, if you have them.
Account opening and management rules
Only a parent or legal guardian can open a Junior ISA on behalf of their child – but anyone can pay into it, providing you don’t exceed the maximum annual allowance. The account is managed by the parent until the child turns 16, then they can do it themselves. When they turn 18, the account turns into an adult ISA and the child has full control of it.
Withdrawal limits
No one can take out any money from a Junior ISA once it’s open until the child turns 18 – and then they can do what they like with it.
How do you choose a Junior ISA provider?
There are plenty of JISA providers out there and it can be tricky to find the best one for your child. With a cash JISA, it’s a bit more straightforward as ideally, you want to be looking at getting the best interest rate for your child’s cash and a provider with decent customer service.
But with a Stocks & Shares JISA there are a lot more factors to compare such as investment options and fees.
Your best bet is to check out our Junior ISA best buy tables for our pick of the top cash and investment accounts.
Are Junior ISAs worth it? The Be Clever With Your Cash team’s opinion
A Junior ISA is definitely worth considering especially if you’ve got a baby or a young child. Because the money is tied up until the child is 18 years old, there’s no chance it can be spent, giving it years and years to compound and grow without anybody touching it.
These long-term accounts are tax-free and allow you to build a potentially significant nest-egg for your child when they become an adult, even if you’re not maximising the £9,000 annual allowance every year.
For example, you opened a JISA for your three-year-old and paid in just £20 a month, assuming a 5% return, your child would have £4,796 by the time they turned 18.
The main concern, as I’ve pointed out above, is the fact your child can do what they want with the money when they become an adult. And if they’ve not learnt how to be responsible with cash, it can be quite a worry for parents who’ve saved carefully for their child over the years. But nobody has a crystal ball with these things and you’ll have to judge it as you see it.
Other options include children’s savings accounts (although tax could apply) and Premium Bonds.
