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Children's ISAs

Junior ISAs can provide an easy and convenient way to save for your child's future, in a tax-efficient way.

Junior ISAs

Junior Tracker Fund ISA

from Legal & General

Regular Savings
  • Investment Options: Choose from over 19 Tracker Funds. Invest from £20 pm

Why we like it: Looking for a junior ISA investment option for your child or grandchild? Legal & General has over 9 million customers in the UK, and over £1.1 trillion of assets under their management (as at 31st December 2019). They have one of the largest range of tracker funds to choose from with 19 low cost index tracker fund options to choose from. You can invest with a low minimum of £100 lump sum or £20 per month, and you can manage your child/grandchild's account easily online.

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Junior Ethical ISA

from Legal & General

Regular Savings
  • Investment Options: Invest from £20 pm or from £100 lump sum. The L&G stocks and shares Junior ISA is a great way to help you save for a child or grandchild, up to the annual allowance of £9,000 for the 2020/21 tax year.

Why we like it: L&G offer a "Future World" range allowing you to invest in funds that don’t just track the market – they seek to make positive change. e.g. The Future Word sustainable Opportunities Fund invests in a wide range of company shares, bonds, property and real assets (including property, land and infrastructure) which meet's L&Gs long term sustainable investment criteria, based on environmental, social and governance factors, while the Future World Climate Change identifies companies that are critical to the shift to a low-carbon economy and are paying special attention to their actions.

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Junior Stocks and Shares ISA

from Hargreaves Lansdown

Regular Savings
  • Investment Options: Invest from £25 per month or deposits of £100.

Why we like it: Invest for your child from £25 pm tax free. A wide range of top performing funds to choose from. The annual charge for holding investments in a Hargreaves Lansdown Junior ISA is never more than 0.45%. Your dealing and other charges will depend on the investments you choose.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

Junior Stocks & Shares ISA

from Fidelity

Regular Savings
  • Investment Options: Fidelity offer Over 140 providers with over 4,000 investment options

Why we like it: You can tell Fidelity your risk preferences and they will suggest funds for you to consider for your child. You can also use their "Select 50" list of Fidelity's favourite funds. Alternatively If you want to look at all investment options you can use their poweful search tool. Fidelity have a low cost service fee that starts from 0.35% pa.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. If you’re unsure, we recommend you ask for independent advice.

What are the rules for children's ISAs?

In terms of rules and regulations, ISAs for children are similar to adult ISAs.

  • There are both Junior Cash and Junior Stocks and Shares ISAs
  • Switching providers is allowed, and is usually free.
  • Unlike Child Trust Funds, junior ISAs don't involve any Government contribution.
  • A junior cash ISA can be opened by the child's parent or legal guardian.
  • Once the child reaches 16, they'll be able to manage their own account. However, they won't be able to withdraw funds until they reach the age of 18.
  • Any child who already has a child trust fund is ineligible for a children's ISA.
  • Family, friends and grandparents can all contribute to the ISA account (within the annual limit), making a junior ISA a good way to save for a child's future.

How much cash can I put into a children's ISA?

The annual deposit limits on children's ISAs are different from standard adult ISAs, and changes each tax year check the current limit here:

There are several options available when it comes to deciding how to use this allowance - the money can either be put into a junior cash ISA in its entirety, or it can divided between a junior stocks and shares ISA and a junior cash ISA, in whatever proportion you wish.

Points to consider when choosing a children's ISA

  • Most children are able to earn tax-free interest with any savings plan, not just a junior ISA, as long as the parent opening it on their behalf fills out an R85 form when setting up the account. However, if you are in a position to contribute funds to your child's ISA that generate over £100 per year in interest, a junior ISA can help you avoid paying tax on this.
  • Once your child reaches 18, the money is theirs to spend however they choose. If you're concerned about money being wasted on non-essential items, you might want to save for your child's future in your own name, instead.
  • The money is locked up until your child turns 18, so think carefully about whether you can afford to leave cash untouched for this period of time, and only save an amount that you're able to afford.
Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

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Stocks and Shares ISAs

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