Junior ISA providers
Junior ISAs, also known as Children’s ISAs were introduced in November 2011 to replace Child Trust Funds. Children's ISAs are designed to help parents save for their children in a tax-free or tax-efficient way.
Each eligible child receives an annual allowance, which gives parents, relatives and family friends a tax-free way of saving and investing for the child's future. 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 any time.
Most banks offer a savings account for children but less offer an ISA option. Browse our comparison tables for latest rates and ISA options.
Rules of Junior ISAs
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 to Consider when Comparing Junior ISAs?
Points to consider when comparing Junior ISA providers include:
- The rate of interest available and whether it’s fixed rate or variable. Check our tables for latest rates
- Whether the provider offers a Junior Cash ISA or a Junior Stocks and Shares ISA
- Any fixed term interest bonuses - when these end, you may want to switch to a new provider
Currently, not all of the most well-known banks offer junior ISAs, so you may need to look beyond the high street to find the best deal available. Current Junior ISA providers include Family Investments, Scottish Friendly, Halifax , Alliance Trust and Nationwide, and more. Use the tables above to compare a range of the best children's ISAs that are currently available.