To find the best junior ISA you first need to decide if you want to invest your child's savings or open a cash account.

  • Junior cash ISAs are cash based deposit savings accounts, where any money you save for your child is protected against dropping in value.

  • Junior investment ISAs invest your child's money in stocks and shares. This offers the potential for a greater return, but your child's money could also fall in value.

Which junior ISA offers a better return?

  • Junior cash ISAs offer variable interest rates. Your child's money will always grow in value as long as the interest rate is above 0%.

  • Junior investment ISAs do not offer variable or fixed interest rates, but instead offer you a return based on current stock market performance.

If you are not sure if a junior investment ISA is the best account for your child, then get advice from an independent financial adviser.

Where can you open each type of junior ISA?

  • Junior cash ISAs are available to open in banks and building societies and do not require you to speak with an adviser.

  • Junior investment ISAs are available through an investment manager and you may need to get advice before you are able to open it on behalf of your child.

You can usually open both types online with a lump sum payment or save throughout the tax year, as long as you do not exceed your child's junior ISA allowance.

How much can you pay into a junior ISA?

Your child has a junior ISA allowance of 4,080 which can be used during the 2016/17 tax year.

You can use all of this allowance in a junior cash or investment ISA, or split it between the two.

You can only pay into one junior cash ISA and one junior investment ISA during each tax year, find out more here.

Junior ISA FAQs


Can I open more than one junior ISA for my child?


You can only open and pay into one junior cash ISA and one junior stocks and shares ISA.


Is my child's money safe in a junior ISA?


Junior cash ISAs are safe but money invested in a junior stocks and shares ISA is linked to the stock market, so could go up or down in value.


Can I withdraw money from my child's junior ISA?


No, the account is not accessible until your child turns 18, when the account is turned into an instant access ISA in their name.


How much can I pay into my child's junior ISA?


Up to your child's ISA allowance of 4,080 each tax year.


Can I save for more than one child in a single junior ISA?


No, you can only open a junior ISA on behalf of one child.


Can I open a junior ISA on behalf of someone else's child?


No, only the parent or legal guardian of a child can open a junior ISA on their behalf.