Junior ISAs explained: saving and investing for children
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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.
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Read the full savings & ISAs guide →Quick answer: Junior ISA allowance →Primary source: www.gov.uk/junior-individual-savings-accounts
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.
Common 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.