# Junior ISAs explained: saving and investing for children

> Savings & ISAs · Last updated 23 June 2026

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## Quick answer

A Junior ISA (JISA) lets parents or guardians save up to £9,000 per year tax-free for a child. The money belongs to the child and is locked until they turn 18, when it converts to an adult ISA.

Junior ISAs are the main tax-free savings wrapper for under-18s in the UK. They replaced Child Trust Funds and come in two types: Cash JISAs and Stocks & Shares JISAs. Once opened, anyone — parents, grandparents, friends — can contribute up to the annual limit, but only parents or guardians can open and manage the account.

## Key facts

- The Junior ISA allowance is £9,000 per tax year, separate from the adult £20,000 ISA limit
- Only parents or guardians with parental responsibility can open a JISA
- Money cannot be withdrawn until the child turns 18 — there are no early access exceptions
- At 18 the JISA converts to an adult ISA; the child takes full control of the money

## Cash vs Stocks & Shares JISA

A Cash JISA earns interest tax-free — suitable for shorter timeframes or risk-averse families. Rates are similar to adult Cash ISAs.

A Stocks & Shares JISA invests in funds, shares or bonds. Over 10+ years, historical returns have beaten cash, but values can fall. Most financial planners recommend investing for children with long time horizons.

## Who can contribute

Anyone can pay into a child's JISA — grandparents often use them for birthday and Christmas gifts. The total across all contributions must not exceed £9,000 per tax year.

The child cannot hold both a Cash and Stocks & Shares JISA simultaneously — you choose one type per child per year.

## What happens at age 18

The JISA automatically becomes an adult ISA. The now-adult child can withdraw everything, continue saving, or transfer to a different ISA provider.

Parents have no legal right to the money once the child turns 18. Discuss financial planning with teenagers before their JISA matures.

## Frequently asked questions

### Can a child have both a JISA and a Child Trust Fund?

No. If your child has a Child Trust Fund from the old scheme, you can transfer it into a JISA but cannot hold both.

### Does a JISA affect benefits?

JISA balances are not counted toward the parents' capital limits for means-tested benefits because the money belongs to the child.

### Should I open a Cash or Stocks & Shares JISA?

For timelines of five years or less, Cash is safer. For 10+ years until adulthood, a Stocks & Shares JISA has historically delivered higher returns despite short-term volatility.

## Primary source

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

## Related

- [ISA allowance 2026/27](https://moneyguide.org.uk/savings/isa-allowance-2026-27/)
- [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.