Junior ISA explained

The £9,000 allowance, the two types and what happens when your child turns 18.

The short answer

A Junior ISA is a tax-free savings account for a child under 18. You can put in up to £9,000 in the 2026/27 tax year. The money belongs to the child, and it cannot be withdrawn until they turn 18. There are two types: cash and stocks and shares.

How it works

A parent or guardian with parental responsibility opens the account and manages it. Anyone can then pay in, including grandparents, up to the yearly limit.
The child can take over managing the account at 16, but cannot take money out until 18.
Interest, dividends and gains are tax-free.
A child can have both a cash and a stocks and shares Junior ISA at the same time.
A child cannot have a Junior ISA and a Child Trust Fund at once, but an existing Child Trust Fund can be moved into a Junior ISA.

Cash or stocks and shares?

Cash: pays interest and the amount does not fall in value. It suits shorter-term goals.
Stocks and shares: can grow more over many years, but can also fall, and the child could get back less than was paid in. With 10 or more years to go until 18, some families choose this, but it depends on how comfortable you are with risk.
Compare charges, because a platform fee takes a bigger share of a small pot. See how to buy shares in the UK.

What happens at 18

At 18, the Junior ISA turns into an adult ISA automatically, and the young person can use the money as they wish. Because it becomes theirs, it is worth talking to them about it beforehand. See ISAs explained for the adult rules.

Where to learn more

Investing carries risk: the value of stocks and shares investments can fall as well as rise. This guide is for information only and is not financial or tax advice. Rules and amounts can change, so check the official pages before you rely on them.