What is a Junior ISA?

A Junior ISA is a tax-free way to save or invest for a child's future. It allows parents, guardians and others to build a financial nest egg for a child, free from UK income tax and capital gains tax.

Designed for children under 18, a Junior ISA can receive up to £9,000 in the 2026/27 tax year. Eligible interest, dividends and capital growth are tax-free. When the child turns 18, the account automatically becomes an adult ISA and the child gains full control of the funds.

A Junior ISA can hold cash, stocks and shares, or both. Cash earns interest without investment-market risk, while stocks and shares offer investment growth potential but can fall in value. This flexibility lets you balance certainty with the chance of higher long-term returns.

Junior ISAs are among the UK's tax-efficient accounts for children. Eligible interest, dividends and investment growth inside the account are free from UK income tax and capital gains tax.

This tax-free status means returns can remain in the account and compound over a period of up to 18 years. Even small, regular contributions can build into a larger pot by the time the child reaches adulthood.

• Interest

  Interest in a cash Junior ISA is free from UK income tax.

• Capital growth

  Eligible investment gains are not subject to UK capital gains tax.

• Dividends

  Eligible dividends inside the account are free from UK dividend tax.

• Reporting

  Parents and guardians do not normally report Junior ISA returns to HMRC.

If the £9,000 allowance stayed unchanged and the full amount was contributed in each of 18 tax years, contributions alone would total £162,000. Any investment growth would also remain inside the tax-free wrapper, although returns are not guaranteed.

Junior ISAs come in two forms: cash and stocks and shares. Both offer tax-free growth, but they work very differently. The right choice depends on your risk tolerance, time horizon and goals for the child's savings.

You are not limited to one or the other. The £9,000 allowance can be split between one cash Junior ISA and one stocks and shares Junior ISA in any ratio. Some families keep part of the money in cash while investing the rest for growth.

For a deeper look at when to save and when to invest, read our Save or Invest guide.

Who can open and manage the account depends on the child's age. The child must normally be under 18 and living in the UK, with a limited exception for a dependant of a qualifying Crown servant serving overseas.

• Under 16

  Only a parent or guardian with parental responsibility can open the Junior ISA. That person becomes the registered contact.

• Aged 16 or 17

  The child can open their own Junior ISA and can become the registered contact for an existing account.

• UK eligibility

  The child must normally live in the UK. A dependant of a qualifying Crown servant serving overseas can also be eligible.

• No Child Trust Fund

  A child cannot hold a Child Trust Fund and a Junior ISA at the same time. The Child Trust Fund can be transferred in full.

After the Junior ISA is open, anyone can contribute, including parents, grandparents, friends and other family members, as long as total payments stay within the child's annual allowance.

Each child has a Junior ISA allowance of £9,000 for the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027. The total applies across both cash and stocks and shares Junior ISAs, and contributions can be split between them in any proportion.

Contributions can come from anyone, including parents, grandparents, relatives and family friends. Every payment counts towards the same £9,000 limit for that child.

Example: if both sets of grandparents save £100 per month each, they contribute £2,400 in a year. Parents could then add £6,600 to use the full £9,000 allowance.

Anyone can pay into a child's Junior ISA, and those contributions are separate from the contributor's own ISA allowance. A grandparent can continue contributing to their own adult ISA while also making gifts into several grandchildren's Junior ISAs.

• Separate limits

  A £1,000 gift into a grandchild's Junior ISA does not reduce the contributor's adult ISA allowance.

• Multiple children

  You can contribute to several children's Junior ISAs, provided each child stays within their own annual limit.

• Inheritance tax

  Junior ISA payments are gifts. The £3,000 annual inheritance-tax exemption is per donor, not per child, and other gift exemptions may apply.

Example: a grandparent could contribute £500 to each of five grandchildren's Junior ISAs, a total of £2,500, while still using their own adult ISA allowance in the same tax year.

Regular standing orders, even small monthly amounts such as £20 or £50, can steadily build a meaningful gift over 18 years without affecting the contributor's own ISA allowance.

A Junior ISA can be transferred between providers or switched between cash and stocks and shares. A transfer may help secure a better cash rate, reduce investment charges or move to a provider with more suitable tools and investment choices.

• Current-year money

  Subscriptions made in the current tax year must be transferred in full.

• Earlier-year money

  Previous-year subscriptions may sometimes be transferred in whole or in part, subject to provider terms and account-type rules.

• Switching types

  A cash Junior ISA can be moved to stocks and shares, or the other way around, without using more allowance.

• Timing and fees

  Transfer times vary by route. Investment transfers can take longer, and a provider may charge exit or dealing fees.

Why fees matter: a £10,000 investment growing at 5% a year for 18 years would reach about £24,066 before fees. If a 1% annual fee reduced the net growth rate to 4%, the illustrated value would be about £20,258, a difference of roughly £3,808.

Use the original guide's fee illustration to see how an annual percentage charge can change long-term growth. Compare all charges that apply to the investments you expect to hold, rather than relying on one universal fee threshold.

Money in a Junior ISA belongs to the child and is normally locked until their 18th birthday. The restriction preserves the savings for adulthood, whether they later use it for education, a first home or another goal.

• Before age 16

  The registered contact manages the account. Parents and guardians cannot normally withdraw the money.

• From age 16

  The child can become the registered contact and manage the account, but still cannot normally withdraw from it.

• At age 18

  The Junior ISA automatically becomes an adult ISA. The child has full control and can keep, transfer or withdraw the money.

• Limited exceptions

  Early access is only allowed in limited circumstances, such as terminal illness or after the child's death, under HMRC and provider rules.

Junior ISAs offer tax advantages and long-term growth potential, but their restrictions will not suit every family. Compare both sides before paying money in.

When comparing Junior ISA providers, focus on cost, flexibility and long-term potential. What matters most depends on whether you prefer a cash Junior ISA or a stocks and shares Junior ISA.

Fees can quietly reduce long-term growth. Use the fee impact calculator to compare an illustration before and after annual charges.

Choosing the provider can make a meaningful difference over a long period. For cash Junior ISAs, compare current AERs, rate terms, transfer rules and FSCS protection. Do not substitute adult Cash ISA rates, because Junior ISA products and eligibility are different.

For stocks and shares Junior ISAs, the examples below retain the three providers from the source guide and replace its stale fee figures with provider-published information checked on 9 October 2026. Charges can change, so read the current terms before applying.