A Junior ISA (JISA) is a long-term, tax-free savings or investment account for a child. It’s one of the simplest ways to give your kids a head start, and thanks to compounding, even small regular amounts can grow into something meaningful by the time they turn 18.
Figures checked: 18 October 2026, for the 2026/27 tax year, from GOV.UK: Junior ISAs.
The key facts
- Allowance: up to £9,000 per child in the 2026/27 tax year. The government has said this will stay unchanged until April 2031.
- This is separate from your own £20,000 adult allowance.
- The child must be under 18 and living in the UK (with exceptions for children of Crown servants).
- A parent or guardian with parental responsibility opens and manages the account, but the money belongs to the child.
- Anyone can pay in: parents, grandparents, aunts, uncles, friends, as long as the total stays within £9,000 a year.
Cash or Stocks & Shares?
There are two types, and a child can have one of each:
| Cash JISA | Stocks & Shares JISA | |
|---|---|---|
| How it grows | Interest | Investment growth and dividends |
| Risk | Low: value won’t fall (but inflation can erode it) | Value can go up and down |
| Typical time frame | Shorter | Long term, often 10+ years |
Because a JISA is usually locked away for many years, a lot of parents choose a Stocks & Shares JISA to give the money more time to grow. But remember: investments can fall in value, and there are no guarantees.
What happens as they grow up?
- At 16: your child can take control of the account (but not withdraw).
- At 18: the JISA automatically becomes an adult ISA in their name, and they can take the money out or keep it invested.
That second point is worth thinking about: at 18 the money is theirs to do with as they wish. Talking to your kids about money early helps them make good choices when the day comes.
Child Trust Funds
If your child was born between 1 September 2002 and 2 January 2011, they may have a Child Trust Fund (CTF). A child can’t have both, but you can transfer a CTF into a JISA, which often gives more choice and lower fees.
A quick example
Putting aside £100 a month from birth to 18 is £21,600 of contributions. If it grew at an assumed 5% a year after fees, it could be worth roughly £35,000 at 18, about £13,000 more than was paid in. At 7% it could be around £43,000. Try your own numbers in the compound interest calculator.
These are illustrations only, not predictions. Real returns vary year to year and can be negative.
This guide is general information, not financial advice.