SAVINGS & INVESTMENTS

Junior ISAs

Create a brighter future, foster their savings, see them flourish

Junior ISAs

A Junior Individual Savings Account (JISA) is a tax-efficient savings and investment account designed specifically for children. Introduced in 2011, JISAs replaced Child Trust Funds (CTFs) as the primary long-term savings vehicle for under-18s.

To be eligible, a child must be under the age of 18 and ordinarily resident in the UK. An exception applies where a child lives overseas but has a parent who is a Crown servant, such as a member of the armed forces or diplomatic service, and remains financially dependent on them. A child cannot hold a JISA and a Child Trust Fund at the same time, although an existing CTF can be transferred into a JISA.

Types of Junior ISA

There are two different forms of Junior ISA, each serving a slightly different purpose:

A child may hold one or both types of Junior ISA, provided total contributions stay within the annual allowance. For the 2025/26 tax year, the maximum that can be paid into Junior ISAs is £9,000 in total, regardless of how many accounts are held.

Opening and managing a Junior ISA

For children under 16, a parent or guardian with parental responsibility must open the account and act as the registered contact. This person manages the account on the child’s behalf, including making investment choices and switching providers if required.

Once the child reaches age 16, they are entitled to take over management of the account, although the registered contact may continue to oversee it if the child wishes. At ages 16 and 17, a child can also open their own Cash Junior ISA independently.

Contributions and access rules

Contributions can be made by anyone, including parents, grandparents, other relatives, or family friends, as long as the annual contribution limit is not exceeded.

The funds held within a Junior ISA belong entirely to the child. They cannot be accessed until the child turns 18, at which point the account automatically converts into an adult ISA. The young adult can then decide whether to withdraw the money, leave it invested, or transfer it to another ISA provider.

Early access to the funds is only permitted in very limited circumstances, specifically if the child becomes terminally ill or in the event of the child’s death.

Tax efficiency and investment considerations

A key benefit of a Junior ISA is that all returns are tax-free. Interest earned on cash savings, as well as investment growth and income from Stocks & Shares Junior ISAs, are not subject to UK income tax or capital gains tax.

However, it is important to recognise that investment-based Junior ISAs carry risk. The value of a Stocks & Shares Junior ISA can rise or fall, and returns are not guaranteed. As with any long-term investment, careful consideration should be given to risk levels and time horizons.

THE VALUE OF INVESTMENTS AND THE INCOME THEY PRODUCE CAN FALL AS WELL AS RISE. YOU MAY GET BACK LESS THAN YOU INVESTED.

ISA INVESTORS DO NOT PAY ANY PERSONAL TAX ON INCOME OR GAINS, BUT ISAS MAY PAY UNRECOVERABLE TAX ON INCOME FROM STOCKS AND SHARES RECEIVED BY THE ISA MANAGERS. TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.