Junior ISA Account

What is a Junior ISA?

A Junior ISA is a tax-efficient way to invest up to £9,000 each year for each child you are a parent or guardian to. You won’t pay Income Tax or Capital Gains Tax on the money inside the Junior ISA, no matter how much it grows.

You remain in control of the investment until your child reaches their 16th birthday, at which point the money belongs to them. However, they cannot withdraw funds until their 18th birthday.

Anyone you know can add to the Junior ISA, making it a useful account for investing gifts for a child’s future – for example from grandparents or extended family.

You can transfer from one Junior ISA into another, as well as transfer a Child Trust Fund into a Junior ISA (but not the other way round).

Cash JISAs v Stocks & Shares JISAs

Unlike a Cash JISA, the returns you get from a Stocks & Shares JISA aren’t limited by the provider’s interest rate. Cash JISA interest rates are often below the inflation rate, meaning money saved in them is losing buying power and won’t be as valuable when your child turns 18.

By comparison, with a Stocks & Shares JISA your money is invested and has the opportunity for much greater growth. The trade-off is that money invested is at risk of loss and you could get back less than you invest.

If you’re new to Junior ISAs or investing, it’s worth reading our guide to choosing the right ISA.