Children's 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.
Last reviewed:
Read the full savings & ISAs guide →Primary source: www.gov.uk/junior-individual-savings-accounts
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.
Common 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.