A Junior ISA (JISA) is a long‑term savings or investment account designed to help build money for a child’s future. It can offer families a structured way to set money aside for a child from an early age, offering them a financial head start when they reach adulthood.
In this guide, we’ll explain some key Junior ISA rules, including who can open an account, how contributions work, and when money can be accessed by the child. We’ll also cover important points around ownership, Junior ISA allowances, and long-term planning.
This information is for general guidance only and does not constitute personal financial advice. Whether a Junior ISA is suitable depends on your child’s individual circumstances. Tax treatment depends on individual circumstances and tax rules may be subject to change in the future.
What is a Junior ISA?
A Junior ISA is a long‑term savings or investment account designed for children under 18 living in the UK. It allows money to be saved or invested in the child’s name, helping to build money over time for their future.
Under current rules, any potential returns from a Junior ISA are free of tax, including interest or investment growth depending on the kind of account you have. Although the account is usually opened and managed by a parent or guardian, the money in a JISA always belongs to the child.
It’s important to know the tax treatment of a Junior ISA depends on individual circumstances and may change. Funds belong to the child and are typically locked in until the child turns 18, at which point they can decide whether they want to withdraw their money or stay invested.
Different types of Junior ISA
There are two main types of Junior ISA available in the UK, each designed to help save or invest in different ways. A Cash Junior ISA keeps money saved in cash, growing through interest like traditional savings accounts, while a Stocks and Shares Junior ISA invests money in the stock market.
Junior Cash ISA
A Junior Cash ISA works in a similar way to a savings account. Money is held as cash, and it can earn interest over time without being subject to income tax.
This type of ISA might appeal to people who prefer to know exactly how much money is in their child’s account, and that it won’t drop below a certain amount. While cash Junior ISAs may generally be considered safe and can't decrease in value, they may not keep pace with inflation, potentially resulting in a loss of purchasing power over time.
Scottish Friendly does not offer cash Junior ISAs.
Junior Stocks and Shares ISA
A Junior Stocks and Shares ISA allows money to be invested in assets like funds, shares, or bonds. Any potential returns they may receive are free from UK income and capital gains tax up to a certain limit - £9,000 in a single tax year under current rules.
A child can hold one Stocks and Shares Junior ISA, either on its own or alongside a cash ISA. Because the money in a Stocks and Shares ISA is invested in the stock market, the value of investments can go down as well as up, and the amount of money available to the child at age 18 could be more or less than what has been paid into the account.
Scottish Friendly is an award-winning Stocks and Shares Junior ISA provider. Investment Life & Pensions Moneyfacts Awards 'Best Junior ISA provider' 2019-2025.
What is the Junior ISA limit and how does it work?
The Junior ISA limit is the maximum amount that can be paid into a child’s ISAs in a single tax year while still benefiting from tax‑efficient treatment.
For the current tax year, the Junior ISA limit is £9,000 per child, and it applies across all Junior ISAs they hold combined. The allowance runs from 6 April 2026 to 5 April 2027 and resets in each new tax year. Any unused allowance cannot be carried forward.
Contributions made within the same tax year must stay within the overall limit, regardless of who pays into the account, ensuring the total does not exceed the annual threshold of £9,000 per child.
Other Junior ISA rules to be aware of
Understanding how a Junior ISA works could help you make the most of the account while staying within the rules. Alongside allowances and access restrictions, there are several important points to be aware of.
Only parents, legal guardians, or children aged 16 or 17 can open a JISA
For children under 16, a Junior ISA must be opened by their parent or a legal guardian with parental responsibility. Once opened, they become the registered contact and manage the Junior ISA accounts on the child’s behalf.
This includes choosing how savings or investments are held and setting up contributions, whether that’s the initial deposit or making regular payments
For as long as the parent or guardian manages the JISA account, they do so on behalf of the child, not as the account owner. This is because the money in a Junior ISA belongs to the child and can’t be accessed until they turn 18.
If a child is aged 16 or 17, they can open a Junior ISA themselves and manage their own account. Again, they won’t be able to access the funds until their 18th birthday.
Anybody can add money to a Junior ISA
Once the Junior ISA account is set up, lots of different people can contribute to it, whether that’s parents, grandparents, or other family members and friends who want to set money aside for the child’s future.
While putting money into a Junior ISA can be shared among family or friends, for either a one-off gift or regular contributions, it’s important to remember that all contributions combined must stay within the annual allowance for that child – meaning no more than £9,000 in each tax year under current rules.
The junior ISA allowance and the adult ISA allowance are separate
The Junior ISA annual allowance is £9,000 per tax year. This limit applies per child and is separate from any ISA allowance an adult may have, as it’s the child’s allowance and any money invested belongs to them.
The adult ISA allowance is currently £20,000 per tax year across all adult ISAs a person might hold. Contributions to a child’s account won’t reduce an adult’s own separate annual allowance.
Both allowances operate independently under current rules, allowing savings and investments to be built for different purposes at the same time.
If you have one adult ISA and open one Junior ISA for your child, for example, that means you could set aside a total of £29,000 in tax-free savings each tax year – up to £20,000 for you in the adult ISA using your ISA allowance, and up to £9,000 in the Junior ISA for the child, using their JISA allowance.
It's worth remembering that if you exceed the Junior ISA contribution limit of £9,000 in a tax year, you will need to contact HMRC.
The money in a Junior ISA belongs to the child
Money paid into Junior ISA accounts is not held by the parent or contributor. Instead, any money paid in belongs to the child from the outset.
Although the parent or guardian manages the account, this is always on the child’s behalf, and they can’t access or use the funds for their own purposes. With a Junior ISA, funds are built specifically for the child's future and can be accessed by them when they turn 18.
Your child can have a Cash Junior ISA and a Stocks and Shares Junior ISA
A child is allowed to hold both types of Junior ISA at the same time. This means they can have, for example, one Cash Junior ISA and one Stocks and Shares Junior ISA, provided the combined contributions stay within their annual JISA allowance.
That means you can open a Cash and a Stocks and Shares ISA for your child within the same tax year, although the total paid across both accounts can’t exceed their £9,000 limit.
The child can't access any money in a JISA until they're 18
A Junior ISA is designed for long‑term saving, so the funds are typically locked in until the child turns 18, except in limited circumstances like terminal illness or death.
The child can manage their account from age 16, depending on the provider, allowing them to track their savings, make investment decisions, and make contributions for themselves.
While the child can choose to manage their own ISA from 16, withdrawals are restricted until age 18. On the day of the child’s 18th birthday, the account becomes an adult ISA, and they can access the funds.
You can transfer a Child Trust Fund to a Junior ISA
A Child Trust Fund (CTF) is a type of junior savings account which is no longer available to new customers. If your child has an existing CTF, it's possible to transfer it into a Junior ISA.
If your child is under the age of 18, you can open a Junior ISA and transfer the CTF money into it, although you need to transfer over the entire amount. This transfer won’t count towards the child’s £9,000 annual JISA allowance.
Although moving savings into a Junior ISA won’t affect the annual contribution limit, any new payments will count towards the allowance. A Child Trust Fund allowance may have applied before the transfer, but once moved, the Junior ISA rules apply.
If your child is already 18 or over and their Child Trust Fund has matured, they can take the money and transfer it over to an adult ISA themselves.
It’s important to note that a child can’t hold both a Junior ISA and a Child Trust Fund at the same time.
Are there other ways to save towards a child's future?
While a Junior ISA is one option, there are many other ways to start investing or saving for your child’s future. Each approach works differently, depending on how you want to manage access, contributions, and what your families’ long‑term goals are.
Child's pension
A child’s pension allows contributions to be made from an early age to support investing for later life. These accounts are considered very long‑term, as the money is usually locked away until retirement.
Contributions to a child pension may receive tax relief, although this depends on individual circumstances and the current legislation, which can change over time.
Child's savings account
A child’s savings account could be a more flexible approach if you’re looking for a regular savings plan for your children. Lots of providers offer easy access to money with no penalty for withdrawal, though it will depend on the details of your specific plan.
Children’s savings accounts operate in a similar way to Junior Cash ISAs in that you deposit money into an account which then earns interest. The key difference is that interest earned may be subject to tax, depending on the amount saved and their particular circumstances.
Lump sum gift
Some people may prefer to give a lump sum gift to a child or save money in their own name on a child’s behalf.
Gifting a lump sum may offer an element of control over how and when the money is used, however lump sums can be subject to inheritance tax if you die within seven years of gifting them. Also, if the child chooses to place the money in an account that accrues interest or generates returns, they may need to pay tax on what they earn.
Some key takeaways
Only a parent or legal guardian, or a child aged 16 or 17, can open and manage a Junior ISA, but anyone can contribute once it’s set up, minus any contributions already made.
The annual Junior ISA allowance is £9,000 (2026/27), shared across all contributions and accounts for that child.
The money belongs to the child, and parents or contributors cannot use or withdraw it.
Funds are locked in until age 18, when the account becomes an adult ISA and the child can access the funds.
There are two JISA types (Cash and Stocks & Shares), with different risk levels and potential returns depending on how the money is held.
Important information
The value of stock market investments can go down as well as up, so you or your child could get back less than you’ve paid in.
The funds paid into a Junior ISA belong to the child and can only be accessed by them when they turn 18.
Tax-Free means the investment grows free from tax, with the exception of any tax your provider has already paid on your behalf (for example on dividends from UK shares). Tax treatment depends on individual circumstances and may be subject to change in the future.
This information is for general guidance only and does not constitute personal financial advice.
Scottish Friendly does not provide financial advice. If you’re unsure whether an ISA or Junior ISA is suitable for your situation, you may want to speak to an independent financial adviser.