What a Junior ISA is
A Junior ISA (JISA) is a tax-free savings or investment account for under-18s, opened by a parent or legal guardian, with its own annual allowance of £9,000 — entirely separate from the adult £20,000 ISA allowance. Like adult ISAs, there are cash and stocks & shares versions.
Who can pay in
Anyone can contribute to a child's JISA — parents, grandparents, other family members — as long as the combined total across all contributions doesn't exceed the £9,000 annual limit. There's no requirement that only the parent who opened it can add money.
Whose money is it?
Crucially, the money belongs to the child, not the parent. It's locked away until the child turns 18, at which point it automatically becomes a normal adult ISA in their name, and they gain full control over it — including the ability to withdraw and spend it however they like, with no say from whoever contributed the money.
Cash vs Stocks & Shares JISA
Given the typically long time horizon (from birth or early childhood through to 18), a Stocks & Shares JISA is often considered for the potential of higher long-term growth compared with cash, accepting the risk that investments can also fall in value. A Cash JISA offers certainty but is more exposed to inflation eroding real value over many years. Some families split contributions between both.
Converting a Child Trust Fund
If your child has an older Child Trust Fund (a similar scheme that predates JISAs), these can usually be transferred into a JISA, often unlocking better rates or investment choice — Child Trust Fund providers aren't always the most competitive, so it's worth checking whether a transfer makes sense.
Key takeaways
- JISAs have their own separate £9,000 annual allowance.
- Anyone can contribute, but the money legally belongs to the child.
- It automatically becomes theirs to control completely at age 18.
- Old Child Trust Funds can usually be transferred into a JISA.