Best Junior ISA Provider
Discover top UK Junior ISAs with low or no fees, diverse investment options, and ready-made portfolios for your child's future.
This calculator is great for estimating what your child’s Junior ISA could be worth and helping you stay on track with their savings goals. However, it does not take into account fees or market ups and downs.
You can’t do anything about market ups and downs, but fees are in your control and are really important—they hurt your child’s returns. Some platforms have waived all their fees for Junior ISAs, so make sure you check our Junior ISA recommendations here.
If you haven’t opened a Junior ISA yet, we have a super simple free guide that will walk you through it step by step.
Learn more from our guides
What is a Junior ISA?
A Junior ISA (JISA) is a tax-free savings account specifically for children under 18.
The child’s parent or legal guardian needs to open the account, but then anyone can contribute to it, up to a maximum combined total of £9,000 per tax year. This is in addition to each adult’s own £20,000 ISA limit.
The parent/guardian manages the account until the child is 16, when they can take control of it – but they can’t withdraw any money from it until they are 18.
There are two types of JISAs:
- A cash JISA, where you save cash and earn interest on it
- A stocks and shares JISA, where the money is invested
When the child turns 18, the account will convert into either a regular cash ISA or a regular stocks and shares ISA.
You can see our top picks for JISA providers here or read more about JISAs in our full guide above.
Why should I open a JISA?
Money earned is tax-free – in addition to your £20k limit
JISAs carry the same tax benefits as a regular ISA in that any interest or returns earned on the money are tax-free – the only difference is that the limit is £9,000 per tax-year rather than £20,000.
Anyone can pay in
Another unique perk of JISAs is that anyone can pay into the account. That means friends and relatives can all contribute to the child’s future.
Can reduce IHT
Another benefit of a JISA is that it can also be a way of leaving money to your kids that will be free of inheritance tax, meaning they keep every penny.
The money is locked away until the child turns 18
Another unique feature of JISAs is that once the money is deposited, no one can access it until the child is 18.
Calculations by Fidelity recently found that if you invested the full £9,000 per year from when the child was born until their 18th birthday, based on 5% annual growth, it could be worth £243,561.40 by the time they turn 18. That’s some 18th birthday present!
What should I consider before opening a JISA?
The money is locked away until the child turns 18
While the money being locked away has its benefits, it’s worth bearing it in mind before depositing the money. You need to be sure you want to put the money in there and won’t need it for anything else.
Cash interest rates aren’t competitive
Another thing worth noting is that the interest rates on cash JISAs are relatively low compared to adult savings accounts.
Inflation can fluctuate, and if inflation is higher than the interest rate on your savings account, you are effectively losing money. Make sure you compare rates before putting money into a cash JISA.
Stocks and shares JISAs could work harder
If you are opening a JISA for a young child and it will have a long time to grow, it may be worth considering opening a stocks and shares JISA. Investments have historically outperformed cash savings over the longer term.
Of course, remember that money invested in the stock market can fall, so you could end up with less than you invested.
How to open a JISA
To open a Junior ISA, you need to pick your JISA provider and then decide whether to open a cash or stocks and shares account.
The parent or guardian of the child whose name the account is in then needs to complete the application process.
The child must be under 16 and a UK resident at the time you apply for the account.
Common questions answered
Does a JISA affect your benefits entitlement?
No, opening a JISA will not impact your ability to claim means-tested benefits, such as Universal Credit.
This is because the money is in your child’s name, not yours, and you cannot access the money once it’s deposited.
Can a child have more than one JISA?
A child can have up to two JISAs: one cash JISA, and one stocks and shares JISA. They cannot have more than one of the same type of JISA.
Can you close a JISA?
Generally, you can’t close a JISA once it’s opened until the child turns 18 and accesses it themselves.
Some providers may offer a cancellation period of up to 30 days after the account is opened, but this can vary.
Do you pay tax when you withdraw from a JISA?
No, you don’t pay any tax for taking money out of a JISA once the child whose name it is in turns 18.
