A Junior ISA (often called a JISA) is designed to help build money for a child. It allows savings or investments to grow free from UK tax under current rules and can be a popular way for families to put money aside for their children.
In this guide, we’ll explain what a Junior ISA is, how it works, and the key information to be aware of. We’ll cover who can open and contribute to a JISA, the annual allowance, and when the money can be accessed, so you can understand how these accounts work as you plan your child’s future.
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 (Individual Savings Account) is a tax‑free savings account designed for children under the age of 18. Introduced by the UK Government, it allows money to be saved or invested on behalf of a child without paying income tax, capital gains tax, or dividend tax on returns.
A Junior ISA can be opened for any child under the age of 18 who is a resident of the UK, and it must be opened by a parent or legal guardian before the child’s 16th birthday. Children aged 16 or 17 can open a Junior ISA for themselves.
A Junior ISA is intended for long‑term saving; the money belongs to the child and cannot be withdrawn until they turn 18. The way it works, including how contributions are made and when money can be accessed, depends on individual circumstances and the type of Junior ISA you hold.
Are there different types of Junior ISAs?
There are two main types of Junior ISA, each designed to support different ways of saving or investing for a child’s future. Both options allow money to potentially grow in a tax‑efficient way, but they work differently depending on whether you want to hold cash or invest your money.
Junior Cash ISA
A Junior Cash ISA is a savings account that allows you to build up a child's savings free from tax. You can add money to the account and earn interest on cash savings, and the child won't pay tax on any interest they earn within the JISA wrapper under current rules. The annual allowance of £9,000 applies to contributions per child.
Cash Junior ISAs provide a guaranteed return based on the interest rate, while Stocks and Shares Junior ISAs depend on the performance of the investments, which can fluctuate in value.
Access to funds is restricted until age 18, in line with Junior ISA rules. Cash Junior ISAs can offer you a more predictable way to save for your child's future, although interest rates and returns can vary over time.
Scottish Friendly does not offer cash Junior ISAs.
Junior Stocks and Shares ISA
A Junior Stocks and Shares ISA allows you to invest the money in assets like funds, shares, or bonds. Any potential returns from these investments, including income or growth, are free from UK income and capital gains tax under current rules.
Unlike a Cash ISA, the value of investments in a Junior Stocks and Shares ISA can go down as well as up, so there is a risk that the amount available when the child turns 18 could be less than what was paid in; it could also be more.
Investing in a Stocks and Shares Junior ISA is typically used for longer-term goals, typically over five years. It’s important to remember that returns are not usually guaranteed.
Scottish Friendly is an award-winning Stocks and Shares Junior ISA provider. Investment Life & Pensions Moneyfacts Awards 'Best Junior ISA provider' 2019-2025.
How do you open a Junior ISA?
A Junior ISA can only be opened for children under 16 by a parent or legal guardian who has parental responsibility. The child must be under the age of 18 and living in the UK to be eligible. Children aged 16 or 17 can open their own Junior ISA account.
For parents or legal guardians opening a Junior ISA, you typically need to provide proof of identify and address for both you and the child, as well as a linked bank account in your name. For children (Aged 16 and 17) opening a JISA, they’ll need their own proof of identify and address as well as a linked bank account in their name.
For children under 16, when the account is set up, the adult becomes the registered contact, meaning they are responsible for managing the account until the child is old enough.
The registered contact can make decisions about how the account is run until the child takes over management, usually from age 16. The account remains in the child’s name at all times, and the money paid in is set aside for their future.
Who can add money to a Junior ISA?
Once a Junior ISA has been set up by a parent or guardian, contributions aren’t limited to the person who opened the account. Different people can pay money into a Junior ISA, helping to build savings over time for the child.
This might include friends, family members like grandparents, aunts, and uncles, or other relatives, depending on your circumstances. Contributions can usually be made in a variety of ways, whether you’re making a one-off payment, or setting up a series of regular contributions by standing order.
Although different people can contribute to the Junior ISA, the account can only be managed by the parent or guardian assigned as the registered contact, until the child is able to take over themselves.
Can I access the money in my child's Junior ISA?
Money saved or invested in a Junior ISA is intended for long‑term use and cannot be withdrawn until the child turns 18. This is because the Junior ISA belongs to the child, even though it is managed by a parent or guardian until they are as least 16.
Because the money belongs to the child, it can’t normally be withdrawn early, except in limited circumstances which might be set out in the rules of the specific Junior ISA you open.
While the funds remain in the account, they can continue to grow and benefit from tax-free status. Once the child turns 16, they can take full control of the account and decide how to use the money. Withdrawing funds, however, is usually not permitted before they turn 18.
What is the Junior ISA limit?
The Junior ISA limit is the maximum amount that can be paid into a child’s account for the current tax year while continuing to save tax‑free under the current rules.
For the 2026/27 tax year, which runs from 6th April 2026 to 5th April 2027, the limit is £9,000 per child, and it applies across all Junior ISAs they hold combined, including both Cash and Stocks and Shares accounts.
The tax-free allowance resets every April. Any unused allowance cannot be carried forward, so if you don’t use the full £9,000 within the tax year, the rest of the allowance is lost.
Does the junior ISA allowance impact my adult ISA?
The Junior ISA allowance won’t affect your own ISA allowance, even if contributions are made in the same tax year.
A Junior ISA has a tax allowance of £9,000 which applies only to the child’s account. An adult ISA has a different tax-free allowance, currently £20,000 for the 2026/27 tax year.
Money paid into a Junior ISA, belongs to the child using their allowance and doesn’t reduce the amount you can pay into your own ISA, whether that’s an adult Cash ISA or Stocks and Shares ISA.
Each person has their own ISA allowance, and each child has their own Junior ISA allowance, allowing savings or investments to be built separately.
Can you transfer a Cash Junior ISA into a Stocks and Shares Junior ISA?
It’s possible to transfer a Cash Junior ISA into a Stocks and Shares Junior ISA, depending on the specific provider and the options they offer. This allows you to move savings from one type of account to another without losing the tax‑free status.
For example, if a child has one Junior Cash ISA, you may be able to transfer some or all of the balance into a Stocks and Shares Junior ISA.
Junior ISA transfers should always be completed through the provider using the official transfer process. Withdrawing funds yourself may result in loss of tax benefits.
Before making a transfer, it’s important to understand that investments can go down as well as up, and the value of any Junior Stocks and Shares ISA can change over time.
Transfer a Junior ISA to Scottish Friendly
Can you turn a Junior ISA into a Lifetime ISA?
Yes, you can turn a Junior ISA into a Lifetime ISA (LISA), but not directly. When a child reaches 18, the account reaches JISA maturity and automatically becomes an adult ISA. At that point, the individual takes full control of the account and can decide how to use the funds.
From their 18th birthday, if they meet LISA eligibility rules, they may choose to open a separate Lifetime ISA. Any money they want to move would typically need to be transferred or paid in using their own ISA allowance.
Transfers between different ISA types depend on provider rules, and tax treatment is based on current legislation, which can change.
Junior ISA vs Child Trust Fund
A Junior ISA and a Child Trust Fund (CTF) were both designed to help build savings for children born in the UK, but they apply to different age groups and come with different rules.
Child Trust Funds were available for children born between 1 September 2002 and 2 January 2011. They are no longer open to new applicants and have since been replaced by Junior ISAs.
Junior ISAs were introduced in the UK on 1st November 2011 to provide a tax-efficient way for families to save for children's futures. While both accounts allow savings to grow tax‑free under current rules, a child cannot usually have both at the same time.
What happens to a JISA when the child turns 18?
From age 16, the child can usually take control of their Junior ISA account, meaning they can manage contributions and investment choices. However, they cannot typically withdraw money until they turn 18.
When a child turns 18, the Junior ISA reaches maturity and automatically becomes an adult ISA. At this point, the child’s savings remain invested or saved within the ISA, but the account is now fully accessible by the individual.
At the point of maturity, it’s up to the individual to decide what to do with the funds in their account.
Are there other options for saving for a child's future?
While a Junior ISA is one way to build savings or investments, there are other options that may be used depending on how you may want to set money aside.
Child savings account
A child savings account is a type of savings account for a child, usually offered by banks or building societies. These accounts can allow money to be saved with different levels of access, meaning funds may be available before the child turns 18.
Unlike a Junior ISA, interest earned in a child’s savings account may be taxable depending on the amount saved and their individual circumstances.
Child pension
Some providers offer pensions specifically designed for children, which can be used to start investing for much later in life.
Contributions to a child pension benefit from pension tax relief under current rules, but the money is usually locked away until the child reaches retirement age, making it a very long‑term investment option.
Lump sum gift
Another approach is giving a lump sum gift to a child or holding savings in your own name for their benefit.
This could offer a bit of flexibility in terms of how and when the money is used, although tax treatment can differ from tax‑efficient accounts like ISAs, and as always, depends on individual circumstances and the latest legislation.
Some key takeaways
A Junior ISA (JISA) is a tax‑efficient account for under 16s, allowing savings or investments to grow free from UK income and capital gains tax under current rules.
It must be opened by a parent, legal guardian, or the child themselves if they’re aged 16 or 17, but family members can contribute, up to £9,000 per tax year (2026/27), minus any contributions already made.
There are two types of JISA: Cash Junior ISA and Stocks & Shares Junior ISA.
The money in a Junior ISA belongs to the child and can’t be accessed until they turn 18.
Contributions count towards the child’s £9,000 annual Junior ISA allowance, not the adult’s ISA limit.
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.