Junior ISA FAQs
Who can open a Junior ISA?
A parent or legal guardian must open the Junior ISA on the child's behalf. Once the account is open, anyone can contribute - grandparents, relatives, and family friends can all pay in · provided the total from all sources does not exceed the annual allowance of £9,000 in 2026/27. The child cannot access the money until they turn 18.
What is the difference between a JISA and a Child Trust Fund?
Child Trust Funds (CTFs) were a government scheme for children born between 1 September 2002 and 2 January 2011. They have been replaced by Junior ISAs. If your child has a CTF you can transfer it into a Junior ISA at any time, which often offers better rates and lower charges. Once transferred the money stays in the JISA until the child turns 18. You cannot hold both a CTF and a JISA simultaneously.
What happens to a Junior ISA when the child turns 18?
When the child reaches 18 the Junior ISA automatically converts into an adult ISA. The child gains full control of the money and can withdraw it, keep it invested, or transfer it to another provider. No tax is due on the funds at conversion. The converted pot does not count against that year's adult ISA allowance · only new contributions made after 18 count toward the annual limit.
Can you withdraw money from a Junior ISA early?
In almost all cases no · funds in a Junior ISA are locked until the child turns 18. The only exceptions are terminal illness of the child or the child's death. This lock-in is a deliberate feature: it ensures the money grows undisturbed for the child's future. If you need flexible savings alongside a JISA, use a separate adult ISA or easy-access savings account for that purpose.
Cash JISA vs Stocks and Shares JISA - which is better?
A Cash JISA pays interest similar to a savings account · rates are currently competitive at around 4-5% · and the balance does not fall. A Stocks and Shares JISA invests in the stock market, offering higher long-run growth potential (historically 6-8% per year on average) but the value can go down as well as up. Because a JISA locks money away for up to 18 years, many financial planners consider Stocks and Shares JISAs more suitable for younger children where there is time to ride out short-term market volatility.
For informational purposes only · Not financial advice · 2026/27 JISA allowance £9,000 · Past investment returns do not guarantee future performance · Stock market investments can fall as well as rise