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ISA for 16 year old

ISA savings options for teenagers

Child or 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 ISA

from Interactive Investor

Regular Savings
  • Investment Options: Choose from more than 40,000 UK and global investment options for your child's ISA.

Why we like it: ii offer a flat fee service which over time could save you money compared to platform providers who charge on the value of investments held. ii offer ready made funds including their ethical funds which allows you to invest in line with your principles covering environmental, social and governance factors.

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.

My Select Junior ISA

from Scottish Friendly

Regular Savings
  • Investment Options: Invest from £10 a month or a £50 deposit

Why we like it: Invest tax-free from £10 a month or a £50 lump sum — or a mix of both. You can raise, lower, stop and restart your payments any time you like. Offers a selection of eight funds to choose from, so you can tailor your child's investment.

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.

Looking at ISA savings options for a 16 year old?

What are the rules for child ISAs?

In terms of rules and regulations, ISAs for a child 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 child'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 child'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.

GUIDE TO JUNIOR ISAS

Give your child a great start in life

Junior ISAs are a popular way for family and friends to build up tax-efficient savings and investments for eligible children to help them with the cost of university, provide a deposit for a house or simply give them a great start in life.

This guide explains what a Junior ISA is, the rules and:

  • The age limit for Junior ISAs
  • How much can I invest in a Junior ISA?
  • The tax benefits of investing in a Junior ISA
  • Who can open a Junior ISA

Get a FREE Guide to Junior ISAs »

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.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

How much can I pay into an ISA?

26th January 2021

Each tax year, there's a limit set by the government to the amount you can save and invest in ISAs: your “annual ISA allowance”. The allowances are intended to reward savers and encourage us to invest more to support our future retirements, without creating a tax haven that can be taken advantage of by very wealthy individuals who just want to avoid paying tax.

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