The Financielle TL;DR on Junior ISAs 💸🍼
- A Junior ISA (JISA) is a tax-free savings or investment account for children under 18
- Parents or guardians can save up to £9,000 per child each tax year
- There are two types: Cash JISA (savings) and Stocks & Shares JISA (investing)
- Anyone can contribute, making JISAs a great alternative to toys or cash gifts
- All growth is tax-free, whether from interest, dividends, or investment gains
- The money belongs to the child and becomes fully theirs at age 18
- Cash JISAs are lower risk, while Stocks & Shares JISAs offer higher long-term growth potential
- Sharing the account’s progress with kids can help build strong money habits early
Junior ISA Guide 2026
A Junior ISA, also known as a JISA, is a tax-free savings account you can build for kids.
Parents can open a JISA for each of their children under the age of 18 and can put in up to £9,000 each year. Any growth in the account is completely tax free!
A JISA can be either a Cash JISA or a Stocks & Shares JISA and anyone can pay into the account – making it a great way for family and friends to give to children, without wasting hundreds of pounds on unwanted toys or gifts.
Contributions to the JISA can be made until the child’s 18 – at which point the account becomes theirs! This is important to remember – if you’d like to save a sum of money for children that stays in your name until you decide to give it, a JISA won’t be the right choice of account.
What is a Cash JISA?
A Cash JISA is where money in the account is held in cash – not invested. It generates interest which is added to the account.
There’s no risk of the amount in the account going down, but ideally you want to at least beat the rate of inflation so the cash holds its relative value.
A Cash JISA is ideal if you’re uneasy about the ups and downs of the stock market.
What is a Stocks & Shares ISA?
A Stocks & Shares JISA is a children’s investment account where the money contributed is used to buy things like shares and funds. Instead of interest, the investments may increase in value or pay dividends to the account. In the same way, they may also go down in value – just like any investment.
In a Stocks & Shares JISA, different providers provide different investment choices, from specific and individual shares, to pre-selected funds (i.e. a selection of investments) based on your particular risk appetite.
Financielle The Vault 📹
Want to know what the Financielle team thinks about JISAs? Check out this episode of the Vault where the team tackle a community dilemma around buying presents for children vs investing for them.
Important Information
This guide is for general information only and does not constitute financial advice. If you need advice tailored to your personal circumstances, please speak to an authorised financial adviser.