# Children's savings accounts explained

> Savings & ISAs · Last updated 4 July 2026

Canonical HTML: https://moneyguide.org.uk/savings/childrens-savings-accounts-explained/
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## Quick answer

Children's savings accounts and Junior ISAs let parents and guardians save for a child's future — JISAs are tax-free and the money belongs to the child at 18.

UK banks offer accounts from birth, often with gifts or higher rates on small balances. HMRC taxes children's interest above £100 if gifted by parents unless using a JISA. This guide compares options.

## Key facts

- Junior ISA allowance is £9,000 per child for 2026/27 — cash or stocks and shares
- Money in a JISA belongs to the child and they control it at 18
- Parental gifts generating over £100 interest a year outside JISAs are taxed as the parent's income
- Child Trust Funds can be transferred to JISAs — old CTFs still exist for teenagers born 2002–2011

## JISA choices

Cash JISAs suit short horizons and emergency university costs. Stocks and shares JISAs suit long horizons of 10+ years where volatility may smooth out.

Only parents or guardians with parental responsibility can open JISAs, but anyone can contribute up to the annual limit. Grandparents and relatives can gift into a child's JISA without triggering the parental tax rule.

## Ordinary children's accounts

Easy access accounts teach saving habits with passbooks or apps. Rates vary — compare against JISA rates because tax treatment differs.

Grandparents and others can gift freely — the £100 rule applies only to interest on money from parents, step-parents or guardians. Interest on money from grandparents is taxed as the child's income.

## At age 18

JISAs convert to adult ISAs automatically. Teenagers gain full access — discuss plans early to avoid impulsive spending of university funds.

CTF holders should transfer to JISAs if rates are poor — transfer forms preserve tax-free status. JISAs typically offer better rates and more choice than legacy Child Trust Funds.

## Frequently asked questions

### Can I access my child's JISA?

No. Only the child can withdraw from 18 — you cannot use it for school fees early without special circumstances.

### One JISA per child?

Yes — one cash and/or one stocks and shares JISA, but only one of each type per child.

### Are Premium Bonds for children?

NS&I allows adults to buy premium bonds for children under 16 — prizes are tax-free but not guaranteed.

## Primary source

https://www.gov.uk/junior-individual-savings-accounts

## Related

- [Junior ISA explained](https://moneyguide.org.uk/savings/junior-isa-explained/)
- [Lifetime ISA explained](https://moneyguide.org.uk/savings/lifetime-isa-explained/)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.