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Junior ISA (JISA) lets you invest money tax-year on behalf of your child before they turn 18-years old. The
JISA can be a
Junior cash ISA or a
Junior stocks and shares ISA. The type of ISA will follow the same general principles as a
cash ISA and
stocks and shares ISA. Differences are below:
Key factors for a Junior ISA are:
- Annual allowance. The current annual allowance for a JISA is £9,000.
- Opening the ISA. When your child was born has an impact:
- Born after 3 January 2011. Very straightforward - find the most suitable JISA option and open the account for your child.
- Born before 2 January 2011 (and under 18). The government may have opened a Child Trust Fund (CTF) automatically. CTFs can be converted to a JISA. Not sure if your child has a CTF? Follow this process.
- Managing the account. As the parent or guardian, you can open and manage the account, but the money belongs to the child.
- Progression of the account. Your child can take control of the account when they turn 16. When your child turns 18, the account becomes a standard ISA
- Accessing the money. The money cannot be withdrawn until your child turns 18.
- Number of accounts. Your child can only hold one cash JISA and one stocks and shares JISA at any time (unlike adults, who can hold multiple ISAs of the same type). You can, however, switch between different providers, and switch money between a cash JISA and stocks and shares JISA.
- Recent changes. Until tax year 2024/25, if your child was 16 or 17, they could have an adult cash ISA. With recent changes, you must be 18 to open an adult cash ISA.
- Protection scheme. Ensure the JISA is protected by the Financial Service Compensation Scheme (FSCS). If your provider goes bust (it happens!), you'll be compensated for all the money you have in the account up to £85,000.
ALWAYS READ THE TERMS AND CONDITIONS OF THE JUNIOR ISA BEFORE YOU COMMIT
What I have done. I can't offer an example here I'm afraid - I don't have any children.
