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Junior ISA Allowance 2021

Compare Junior Stocks & Shares ISAs From £10 pm!

Investment ISAs put your capital at risk & you may get back less than you originally invested

Junior ISAs

Junior Stocks & Shares ISA

from AJ Bell

Regular Savings
  • Invest From: £25 pm
  • Investment Options: AJ Bell offer a wide range of investments including shares, funds, investment trusts and ETFs (exchange traded funds). Capital at risk.

Why we like it: Invest from £25 pm or invest a lump sum up to £9,000 in the 2021/22 tax year. AJ Bell offer a wide range of investment options. For a "no hassle" option, you can choose from one of 8 funds and AJ Bell Investments will do the rest. AJ Bell offer a "Responsible Growth Fund" focused on companies taking their commitment to the environment and society seriously.

Junior Stocks & Shares ISA

from Interactive Investor

Regular Savings
  • Invest From: £25 pm
  • Investment Options: Choose from more than 40,000 UK and global investment options for your child's ISA. Capital at risk.

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.

Junior Stocks & Shares ISA

from Nutmeg

  • Investment Options: Invest in one of four expertly designed portfolios depending on your investment style. Capital at risk.

Why we like it: Invest from £100. Simple, transparent - Invest in one of a range of four expertly designed portfolios depending on your investment style. All four Nutmeg investment styles are built by experts and use low cost exchange traded funds to diversify across stocks, bonds, industries, even countries.

Junior Stocks & Shares ISA

from Hargreaves Lansdown

Regular Savings
  • Invest From: £25 pm
  • Investment Options: Invest in over 3,000 funds, UK and overseas shares, investment trusts and ETFs. Capital at risk.

Why we like it: Invest for your child from £25 pm tax free. Looking for inspiration? HL offer a wide investment choice for you to invest in with some great fund ideas. They are a FTSE 100 listed company trusted by over 1 million clients.

Junior Stocks & Shares ISA

from Wealthify

Regular Savings
  • Invest From: £1
  • Investment Options: Choose from one of five investment styles based on risk, and a team of experts build your child’s Junior ISA, choosing which investments to buy and managing them on your behalf

Why we like it: You can choose to invest for you child in an Ethical Plan or an Original Plan. Wealthify Junior ISAs contain a range of investments from across the globe matched to the level of risk you choose. Each Junior Stocks & Shares ISA will contain up to 20 investment funds from providers like Blackrock and Vanguard Wealthify is authorised and regulated by the Financial Conduct Authority (FCA). Your money is looked after by our team of experienced and qualified investment managers, and we’re backed by global financial services provider, Aviva. Invest up to £9,000 per year and/or transfer from existing Junior ISA or Child Trust Fund. Capital at risk.

Junior Stocks & Shares ISA

from Scottish Friendly

Regular Savings
  • Invest From: £10 pm
  • Investment Options: A selection of 9 funds so you can tailor your child's investment. Capital at risk.

Why we like it: Offers a selection of 9 funds to choose from, including an "International Ethical Fund" so you can tailor your child's investment. Winner of Best Junior ISA provider for the 2nd year running at the Investment Life and Pensions Moneyfacts Awards 2020.

Junior Stocks & Shares ISA

from Shepherds

Regular Savings
  • Invest From: £10 pm
  • Investment Options: Is an insurance based Junior ISA which invests in stocks and shares via a With-Profits pooled fund. Capital at risk.

Why we like it: Your child’s money will be invested through a fund manager & will be invested primarily in stocks and shares, with the aim of achieving higher growth over the long-term than might be available through a cash-based Junior ISA. Open a Junior ISA for your child and get rewarded too. Shepherds will send you a Love2shop voucher code worth up to £50 when you make your first payment. See terms and conditions.

Junior Stocks & Shares ISA (FTSE 250 Index Tracker Fund)

from HSBC

Regular Savings
  • Invest From: £25 pm
  • Investment Options: The Fund's investment objective is to provide long term capital growth by matching the capital performance of the FTSE 250 Index by investing in companies that make up the index. Capital at risk.

Why we like it: A low cost FTSE 250 tracker with a 0.12% pa annual charge. This fund tracks the 250 largest capitalised companies in the index. The investment objective of the Fund is to replicate the performance of the FTSE 250 Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. Income generated is reinvested. HSBC has lots of experience running tracker investment funds.

This fund is available through a Junior ISA via: Interactive Investor investment platform »

Junior Stocks & Shares ISA (Future World ESG Developed Index Fund)

from Legal & General

Regular Savings
  • Invest From: £25 per month
  • Investment Options: Invests in broad developed stock markets, such as the US, Japan and Europe. Capital at risk.

Why we like it: Responsible investment funds give you the chance to make money in a way that’s in line with your principles. This Fund is designed for investors looking for growth and income from an investment in shares in companies that demonstrate good environmental, social and governance efforts in developed countries. L&G use their scale and influence within the market to propel positive change on environmental, social and governance (ESG) issues.

This fund is available through a junior ISA via: Hargreaves Lansdown investment platform »

Junior Ethical Stocks & Shares ISA

from Nutmeg

Regular Savings
  • Invest From: £100 lump sum
  • Investment Options: Nutmeg offer a socially responsible junior investment ISA which places emphasis on environmental and social and governance factors. Capital at risk.

Why we like it: Open with a lump sum from £100. Simple, transparent - Socially responsible portfolios are tilted towards companies and bond issuers that have high environmental, social and governance (ESG) standards. Nutmeg invest in exchange traded funds that avoid companies engaged in controversial activities while focusing on those that lead their peers on ESG.

Junior ISA Allowance 2021

The Junior ISA limit for the 2021/2022 tax year is £9000. 

If you already have a Child Trust Fund then you will be unable to open a Junior ISA. However, you can transfer the Trust Fund in to an ISA, just check with your provider for their transfer rules and process.

Transfers can be made between Junior Cash ISAs and Junior Stocks and Shares ISAs, and between ISA providers, but only one Junior Cash ISA and one Junior Stocks and Shares ISA can be held per child at a time.

You're able to split the allowance between a Junior Cash ISA, a Junior Stocks and Shares ISA or a combination of the two.

Junior Cash ISA - Junior cash ISAs work in a similar way to a normal savings account, except that you don’t pay UK Income Tax on the interest your money earns.

Junior Investment ISA - Junior investment ISAs can offer a potentially higher rate of return on the money as savings are invested in the stock market. And you also won’t pay UK Income Tax or Capital Gains Tax on any of the returns.

However, it’s important to consider that the value of investments and so, the amount in the Junior ISA could go down as well as up.

Rules of Junior ISAs 2021

Junior ISAs are very similar to adult ISAs. The accounts are a tax-efficient wrapper that allow parents, grandparents, friends or guardians to invest up to the maximum allowance a year on a child's behalf, in either cash account or investment funds.

  • Savings and investments cannot be cashed in before the child reaches 18 when they will assume full control
  • There are both Junior Cash ISAs and Junior Stocks & Shares ISAs available
  • Like adult ISAs, you can divide the Junior ISA allowance between cash and investments in whatever proportion you wish
  • Children who already have a Child Trust Fund do not qualify for a junior ISA. However, you are able to transfer the trust fund to an ISA
  • A young person aged 16 can open their own Junior ISA. They can also open a regular cash ISA as well
  • An adult with parental responsibility may open a junior ISA on behalf of someone aged under 16 years old
  • Anyone can contribute towards the Junior ISA once it is opened, including grandparents, family members and friends
  • All money contributed into a junior ISA is considered a gift and cannot be subsequently returned to the giver if they change their mind
  • No withdrawals can be made from the account, until the child turns 18 at which point the account rolls over into a normal type of ISA, in their name, and they can do with it whatever they wish

What are the Advantages of Junior ISAs?

Junior ISAs provide parents, friends and family members with a convenient, tax-efficient way to save for a child's future

  • The money saved in a junior ISA stays tax-free once the child reaches the age of 18
  • The money is locked away until the child turns 18, which can stop children from being tempted into spending it on unimportant items
  • If you want to save an annual amount for your child that generates over £100 in yearly interest, a junior ISA ensures that this interest isn't taxed

What are the Disadvantages of Junior ISAs?

  • Once your child reaches 18, the money is theirs to spend or save as they wish. If you've got a specific savings goal in mind for your child - for example, a mortgage deposit - you might be better off setting up a savings account in your own name so that you can ensure the money is used for the purpose you originally intended

  • The ISA isn’t always the best option in terms of savings due to dwindling interest rates. Children are also entitled to the Personal Savings Allowance so check if the ISA is the best option for you. Savings Accounts or even Current Accounts could offer better options and higher interest rates

What should I look for?

There are some important things to search for when trying to find the best ISA option for you. Check our tables:

If you are investing for the long term for your child you may wish to consider an investment over a cash ISA. 

This decision will depends on whether you’re willing to take a risk with your money. Investing is always carries some form of risk but the returns are generally higher over a 5 year plus period. Many Investment ISAs now manage the funds for you and invest to a level of risk you’re comfortable with, so it’s definitely a viable option for your money. A Cash ISA means you will not lose any money however taking into the eroding effect of inflation, it is important to remember that if inflation runs at a higher rate to ythe interest the ISA earns, your money is actually losing value in real terms. 

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:

Important: Investments can go down in value as well as up, so your child could get back less than you invest. The information on this page isn't personal advice - if you’re not sure if an investment is right for you or your child, please ask for advice. ISA tax rules can change and their benefits depend on individual circumstances.

High Income ISAs

High income ISA ideas:

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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

5 Considerations for Your Next Investment ISA

15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

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