Junior Individual Savings Accounts (ISAs) are long-term, tax-free savings accounts for children.
In the 2019 to 2020 tax year, the savings limit for Junior ISAs is £4,368
Who can get a Junior ISA
Your child must be both:
- under 18
- living in the UK
If your child lives outside the UK
Your child can only get a Junior ISA if both the following apply:
- you’re a Crown servant (in the UK’s armed forces, diplomatic service or overseas civil service, for example)
- they depend on you for care
You cannot 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, for example you will not pay tax on interest on the cash you save
- a stocks and shares Junior ISA, for example your cash is invested and you will not pay tax on any capital growth or dividends you receive
Your child can have one or both types of Junior ISA.
The child can take control of the account when they’re 16, but cannot withdraw the money until they turn 18.