News & Views

Junior ISAs – a way of saving for children

8th August 2023

As part of our series in looking how grandparents can help their grandchildren with investments and savings for their future, this week we are looking at Junior ISAs.



Junior ISAs are a good option if you are planning ahead and would like to help your children or grandchildren when they are a bit older.

However, only parents or guardians with parental responsibility can open a Junior ISA for a child under 16. You also need to open separate Junior ISAs for each child. But anyone (including grandparents) can add to the account up to the £9,000 annual limit (2023/24 allowance). That said you can also make regular or one-off payments.

There are two options:

Cash Junior ISA – this is a tax-free savings account that pays interest.

Stocks and shares Junior ISA – the money is also tax-free, but you can invest in the stock market.

While sticking with cash may seems a safer option as interest rates have improved recently, investing in stocks and shares over as long as 18 years has more chance of beating inflation.

In fact, you can have two separate Junior ISAs for the same child if the combined total doesn’t exceed the annual allowance. So, based on the current 2023/24 allowance, a child could have £6,000 invested in a stocks and shares Junior ISA as well as £3,000 in Junior Cash ISA.

Investing in a Junior ISA means that the money goes to your grandchild, as only the child can take the money out when they are 18. And if they don’t take the money out, then it can be transferred to a normal adult ISA.

Junior ISAs certainly help to give your grandchild a fantastic start in Life.

You can find out more about Junior Individual Savings Accounts on the UK Government website here>>

Next week we’ll look at a Junior Pension as part of our series looking at how parents, guardians and grandparents can help invest in a child’s future. There are links to the articles already published below.


1.            Children’s Savings Accounts

2.            Junior ISAs

3.            Junior Pension

4.            Premium Bonds

5.            Bare Trusts


And if you want to discuss any on the above, you can schedule an appointment with us here>>

* The value of an investment may go down as well as up, and you may get back less than you originally invested.