FAQs About Junior ISAs |Your Guide to Tax-Free Savings for Children

Frequently Asked Questions About Junior ISAs

4 min read

A Junior ISA (JISA) is a tax-free savings or investment account designed to help parents and guardians save for their child’s future. Whether you’re considering opening one or already managing a Junior ISA, here are 20 frequently asked questions to help you understand how they work.

1. What is a Junior ISA?

A Junior ISA is a long-term, tax-free savings or investment account for children under 18.

2. Who can open a Junior ISA?

Only a parent or legal guardian can open a Junior ISA on behalf of a child.

3. How much can I contribute to a Junior ISA?

✔ The maximum contribution is £9,000 per tax year.
✔ Contributions can be made by parents, grandparents, and friends.

4. What tax benefits do Junior ISAs offer?

✔ No income tax on interest or investment gains.
✔ No capital gains tax on withdrawals.

5. What types of Junior ISAs are available?

✔ Cash Junior ISA – Works like a savings account with tax-free interest.
✔ Stocks & Shares Junior ISA – Invests in funds, stocks, and bonds for potential growth.

6. Can my child have both types of Junior ISA?

Yes, a child can have both a Cash and a Stocks & Shares Junior ISA, but only one of each type

7. Can my child access the money before turning 18?

No, Junior ISA funds are locked until age 18.

8. What happens to the Junior ISA when my child turns 18?

✔ The Junior ISA converts into a standard adult ISA, and the child gains full control over the funds.

9. Can grandparents contribute to a Junior ISA?

Yes, anyone can contribute, but the total annual contributions must not exceed £9,000

10. What are the fees associated with Junior ISAs?

✔ Cash Junior ISAs – Usually no fees, but interest rates vary.
✔ Stocks & Shares Junior ISAs – May have platform fees, fund charges, and trading costs.

11. Can I transfer a Child Trust Fund into a Junior ISA?

Yes, a Child Trust Fund (CTF) can be transferred into a Junior ISA, but a child cannot have both

12. What happens to the Junior ISA if the child dies?

✔ The funds are passed to beneficiaries tax-fre

13. Can my child have both a Junior ISA and a Junior SIPP?

Yes, a child can have both accounts, allowing tax-efficient savings for different financial goals.

14. How do I choose a Junior ISA provider?

✔ Compare interest rates, investment options, fees, and customer service.
✔ Popular providers include NS&I, Hargreaves Lansdown, and Foresters Financial.

15. Can I change the investments in a Stocks & Shares Junior ISA?

Yes, parents can adjust investments based on market conditions and financial goals

16. What happens if I stop contributing to a Junior ISA?

✔ The existing savings or investments remain and continue to grow.
✔ You can resume contributions at any time.

17. Can my child contribute to their Junior ISA?

No, only parents, guardians, or other adults can contribute until the child turns 18.

18. What is the annual allowance for Junior ISAs?

✔ £9,000 per tax year, set by the government.

19. Can I invest in international stocks with a Junior ISA?

Yes, Stocks & Shares Junior ISAs allow investment in global markets, including US, European, and Asian stocks.

20. Is a Junior ISA right for my child?

✔ Ideal for long-term financial planning and tax-efficient growth.
✔ If you prefer flexible savings, a regular savings account may be a better option

Final Thoughts

Junior ISAs offer tax benefits, investment flexibility, and long-term growth, making them a powerful financial tool for securing a child’s future. Whether you’re starting a Junior ISA, choosing investments, or planning contributions, understanding the rules and options can help you maximize your child’s savings.