1. Overview

Junior Individual Savings Accounts (ISAs) are long-term, tax-free savings accounts for children.

In the 2015 to 2016 tax year, the savings limit for Junior ISAs is £4,080

Who can get a Junior ISA

Your child can have a Junior ISA if they:

  • are under 18
  • live in the UK

You can’t have a Junior ISA as well as a Child Trust Fund. If you want to open a Junior ISA ask the provider to transfer the trust fund into it.

How Junior ISAs work

There are 2 types of Junior ISA:

  • a cash Junior ISA, eg you won’t pay tax on interest on the cash you save
  • a stocks and shares Junior ISA, eg your cash is invested and you won’t pay tax on any capital growth or dividends you receive

Your child can have one or both types of Junior ISA.

Parents or guardians with parental responsibility can open a Junior ISA and manage the account, but the money belongs to the child.

The child can take control of the account when they’re 16, but can’t withdraw the money until they turn 18.