Junior ISA Explained: Saving for Your Child’s Future
A Junior ISA (JISA) is a tax-free savings or investment account for children under 18. It lets parents, guardians, and family members build a financial head start for the child, with no tax on interest, dividends, or capital growth.
It is part of the wider ISA family, alongside options like the Cash ISA and Stocks & Shares ISA.
Who Can Open a Junior ISA?
- The child must be under 18 and usually resident in the UK
- A parent or legal guardian must open and manage the account
Once open, anyone, including grandparents or family friends, can contribute to it.
How Much Can You Save?
In the 2025/26 tax year, the annual Junior ISA allowance is £9,000.
This allowance is separate from the adult £20,000 ISA limit, so it does not affect how much you can save in your own ISAs. Unused Junior ISA allowance does not carry over to the next tax year — it resets each 6 April.
Types of Junior ISA
- Junior Cash ISA — earn tax-free interest, similar to a savings account
- Junior Stocks & Shares ISA — invest in the markets with long-term growth potential
You can open one of each type, and contribute to both in the same tax year, as long as total payments do not exceed £9,000.
Cash JISA vs Stocks & Shares JISA
| Feature | Junior Cash ISA | Junior Stocks & Shares ISA |
|---|---|---|
| Risk | Low | Medium to high (market risk) |
| Typical return | Interest set by provider | Variable; can fall as well as rise |
| Best for | Shorter horizon or low risk appetite | 10+ year horizon and growth focus |
| Access | Locked until age 18 | Locked until age 18 |
| Tax on returns | None | None |
When Can the Child Access the Money?
All money in a Junior ISA is locked away until the child turns 18. At that point, the account becomes a standard adult ISA, and the child gains full control of the funds.
You cannot withdraw money early, even if you are the parent, so make sure you will not need access before their 18th birthday.
Cash or Stocks & Shares?
If your child is under 10, many parents choose a Junior Stocks & Shares ISA to allow time for growth. For older children or if you prefer lower risk, a Junior Cash ISA may be more suitable. You can switch providers or transfer between Cash and Stocks & Shares JISAs later if your risk tolerance changes, using the formal transfer process.
Transfers and Child Trust Funds
Children born between 1 September 2002 and 2 January 2011 may have a Child Trust Fund (CTF). You can transfer a CTF into a Junior ISA at any time. Always request a formal transfer with the new provider rather than withdrawing funds yourself, to preserve the tax wrapper.
Is a Junior ISA Worth It?
For most families who are already saving for a child, a Junior ISA is a strong choice. It shelters returns from tax, can be invested for long-term growth, and encourages good money habits from an early age.
Frequently Asked Questions
Who owns the money in a Junior ISA?
The child is the beneficial owner from day one. Parents or guardians manage the account until the child takes control at 16 to 18, depending on provider rules.
Can I withdraw money before age 18?
No. Junior ISAs are locked until age 18 except in very rare circumstances. At 18, the JISA converts to an adult ISA and the child has full access.
What happens at age 16 vs 18?
At 16, the child can usually take over management permissions, but cannot withdraw. At 18, the account converts to an adult ISA and withdrawals are allowed.
Can I transfer a Child Trust Fund to a Junior ISA?
Yes. Ask your chosen JISA provider to arrange the transfer. Do not withdraw the CTF yourself or you will lose the tax advantages.
Can family and friends pay in?
Yes. Anyone can contribute, as long as total payments across all Junior ISAs for that child do not exceed £9,000 in 2025/26.
Can my child have both a Cash and a Stocks & Shares JISA?
Yes. You can hold one of each and contribute to both in the same tax year within the £9,000 total limit.