Junior ISA (JISA)

A Junior ISA is one of the best financial gifts you can give a child. Every penny you put in grows completely free from tax — and by the time they turn 18, even modest regular contributions can add up to a life-changing sum. Whether you want to save safely in cash or invest for long-term growth, there is a Junior ISA for every family. We can connect you with a specialist who will help you choose the right one. The introduction is free.

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The numbers that matter — in plain English

£9,000maximum you can pay into a child’s JISA each tax year (2025/26)
0%tax on growth, interest, and dividends inside a JISA — ever
18the age the child gets full control and can access the money
Anyonecan contribute — parents, grandparents, family friends — up to the annual limit
📌 How powerful is starting early? If you invest £200 per month into a Stocks & Shares JISA from birth, and it grows at an average of 6% per year, your child could have around £77,000 by the time they turn 18. Start at age five and the same contributions produce around £55,000. Time is the most powerful ingredient — which is why starting as early as possible matters so much.

A Junior ISA can only be opened by a parent or legal guardian, but once it is open, anyone can pay into it — grandparents, aunts, uncles, family friends. Birthdays and Christmases become an opportunity to build something lasting rather than buy something forgotten. The child cannot touch the money until they turn 18, which means it has time to grow undisturbed.

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Protect the Plan — Free Trust Guidance Included

If you are building a JISA alongside a life insurance policy, writing that policy in trust ensures the payout reaches your family quickly — bypassing probate and free of inheritance tax. We include free trust guidance for every protection client.

Find out about our free trust service

The two types of Junior ISA — which is right for your child?

Safe & stable

Cash Junior ISA

Works like a children’s savings account, but with no tax on the interest. Your money is safe — it cannot go down in value. Protected by the FSCS up to £85,000 per provider.

Best for: Families who want certainty, or who may need to access the money soon after the child turns 18. Also good as part of a split approach alongside a Stocks & Shares JISA.

Long-term growth

Stocks & Shares Junior ISA

Your money is invested in funds, shares, or bonds. The value can go up and down — but over 10, 15, or 18 years, investing has historically produced significantly better returns than cash.

Best for: Families with a long time horizon who want to maximise the pot. The longer the investment period, the more time there is to ride out any short-term dips.

Cash JISA vs Stocks & Shares JISA — side by side

Feature Cash JISA Stocks & Shares JISA
Can the value go down? No — your money is safe Yes — but historically grows more over the long term
Tax on growth None None
FSCS protected? Yes — up to £85,000 Up to £85,000 (cash element) — investments not FSCS protected
Best time horizon Any — especially shorter 10 years or more
Who manages it? The provider sets the rate You or an adviser choose the funds
Can you switch type? Yes — you can transfer between types once per year Yes — you can transfer between types once per year

Why a Junior ISA beats a children’s savings account

No tax on growth — everInterest and investment gains inside a JISA are completely tax-free. In a regular children’s account, interest above the child’s Personal Allowance (£12,570) is taxable — and if it comes from parental gifts, different rules apply.
The money is locked inThe child cannot access the money until they turn 18. That sounds restrictive — but it is actually a feature. It means the pot cannot be raided for short-term wants and has time to grow undisturbed.
Anyone can contributeGrandparents, godparents, aunts, uncles — anyone can pay into a child’s JISA, up to the £9,000 annual limit. It becomes a family project.
Compound growth over 18 yearsReturns generate their own returns. Over 18 years, the compounding effect is dramatic — especially in a Stocks & Shares JISA where growth can significantly outpace inflation.
Converts to an adult ISA at 18When the child turns 18, the JISA automatically becomes an adult ISA. The money stays tax-free and the child can continue contributing from their own allowance.
No income tax on parental giftsUnlike a regular savings account where interest on parental gifts above £100 per year is taxed as the parent’s income, JISA growth is always tax-free regardless of who contributed.

Who can open a Junior ISA?

The rules are straightforward — here is what you need to know.

Who can open it?Only a parent or legal guardian can open a JISA. Once open, anyone can pay into it.
Who is eligible?Any child under 18 who lives in the UK. Children born between 1 September 2002 and 2 January 2011 who had a Child Trust Fund can transfer it to a JISA.
How many JISAs can a child have?One Cash JISA and one Stocks & Shares JISA at the same time. You can split the £9,000 allowance between them however you like.
Can you transfer between providers?Yes — you can transfer a JISA to a different provider at any time. You can also switch between a Cash JISA and a Stocks & Shares JISA once per year.
What happens at 18?The JISA automatically becomes an adult ISA. The child gets full control and can withdraw, continue saving, or invest as they choose.
What if the child dies?The money forms part of the child’s estate. In practice, it would pass to the parents or guardians. A specialist can advise on the full picture.

How to get connected to a Junior ISA specialist

1

Get in touch

Tell us you want to open a Junior ISA for your child and a little about your situation — their age, how much you want to save, and whether you prefer cash or investing. No forms, no pressure.

2

We make the introduction

We introduce you to a specialist we know and trust. The introduction is warm — they will know your situation before they call.

3

The specialist finds the right fit

They will recommend the right type of JISA, the right provider, and the right funds (if investing) for your child’s timeline and your family’s goals.

4

You start building their future

Set up a regular contribution and watch the pot grow — tax-free, year after year, until they turn 18.

Get Your Free Junior ISA Introduction

Junior ISA questions answered

Can grandparents open a Junior ISA?
Grandparents cannot open a JISA — only a parent or legal guardian can do that. But once the account is open, grandparents can pay into it freely, up to the £9,000 annual limit shared across all the child’s JISAs. Many families set up a standing order from grandparents as a birthday or Christmas gift that keeps giving.
What if my child already has a Child Trust Fund?
Children born between 1 September 2002 and 2 January 2011 were given a Child Trust Fund (CTF) by the government. You cannot have both a CTF and a JISA at the same time — but you can transfer the CTF into a JISA. This is often worth doing, as JISAs typically offer better rates and more investment options. A specialist can manage the transfer for you.
What happens to the money when my child turns 18?
The JISA automatically converts to an adult ISA on the child’s 18th birthday. The money stays tax-free and the child gets full control. They can withdraw it, leave it invested, or continue contributing from their own £20,000 annual ISA allowance. The pot does not count against their allowance — it is already inside the ISA wrapper.
Can my child access the money before 18?
No — with one exception. The money is locked until the child turns 18. The only exception is if the child is terminally ill, in which case the funds can be withdrawn early. This restriction is actually one of the JISA’s strengths — it means the pot cannot be touched and has the full time to grow.
Should I choose a Cash JISA or a Stocks & Shares JISA?
It depends on your child’s age and your attitude to risk. If your child is young — say, under 10 — a Stocks & Shares JISA gives the investment plenty of time to grow and recover from any short-term dips. If your child is older and closer to 18, a Cash JISA offers more certainty. Many families split the allowance between both. A specialist will help you decide what is right for your situation.
Is the introduction really free?
Yes — we make the introduction at no cost to you. The specialist will explain their service and any costs clearly before you make any decision.

Explore our investment hub

Investments HubBack to the main investments page — explore all your options in one place. Junior SIPPStart a pension for your child from birth — with tax relief and decades of growth ahead. Stocks & Shares ISAYour own tax-free investment account — up to £20,000 per year. Cash ISATax-free savings for you — safe, simple, and FSCS protected.
Written by Ben Tomlin — Financial Adviser, That’s Family Finance (a trading style of RB Ame Ltd).
Qualifications: Level 4 Diploma in Financial Advice · Level 3 Certificate in Mortgages & Protection · Level 3 Certificate in Equity Release.
FCA Individual Reference Number: BXT01420 · Last reviewed: August 2026.
Important information: That’s Family Finance is a trading style of RB Ame Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 1038034). Our FCA permissions cover protection insurance only. We do not provide investment advice. Where we introduce clients to investment advisers or savings specialists, those introductions are to separately FCA-authorised firms. The value of investments can go down as well as up. You may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change. JISA and tax rules are based on current legislation for the 2025/26 tax year. This page is for information only and does not constitute financial advice.