Junior ISA (JISA)
A tax-free savings and investment account for children under 18. Parents, family, and friends can contribute up to £9,000 per year, with the money belonging to the child at 18.
By Omair SaoLast reviewed — rates for the 2026/27 tax year. See how we check our figures.
How It Works
A parent or guardian opens a JISA for a child under 18. Anyone can contribute up to £9,000 per year. The money is locked until the child turns 18, when it converts to an adult ISA.
Tax Treatment
All interest, dividends, and capital gains are completely tax-free. The money belongs to the child and converts to an adult ISA at 18.
Tax Advantages
- All growth is completely free of income tax and CGT
- Separate from the adult ISA allowance
- No parental settlement rules on growth
Who Is This Suitable For?
Parents and grandparents building a tax-free savings pot for a child. The long time horizon suits a Stocks & Shares JISA.
Worked Example: One £9,000 gift at birth, left to grow for 18 years
- 1A parent opens a Stocks & Shares JISA in the child's first year and pays in £9,000, the annual limit.
- 2Assume 5% growth a year: £9,000 × 1.05 to the power of 18 is roughly £21,660.
- 3The £12,660 of growth is free of income tax and CGT, and none of it is taxed on the parent who provided the money.
- 4At 18 it becomes an adult ISA in the child's name, and the balance does not use any of their own £20,000 allowance.
Result: A single early contribution does much of the work; small sums added later compound on top.
Illustrative figures using the 2026/27 rules on this page, last checked on 25 September 2026.
Advantages and Drawbacks
Advantages
- The £100 rule that taxes a parent on income from gifts to their child does not apply inside a JISA.
- A child can have both a Cash JISA and a Stocks & Shares JISA, splitting the £9,000 between them.
- Grandparents, friends and family can all pay in once the account is open.
Drawbacks
- The money belongs to the child outright at 18, whatever they choose to do with it.
- Nothing can be withdrawn earlier except in cases of terminal illness or death, so it cannot double as a family emergency fund.
- A child who already has a Child Trust Fund cannot open a JISA until the CTF is transferred across.
Notes for Limited Company Owners
Company money cannot go straight into a child's JISA; it must first be paid to you as salary or dividends. Some directors employ a teenager in the business for genuine work and let the child fund their own JISA from those wages, which sidesteps the parental settlement rules — but the pay must be justifiable for the duties done.
Common Mistakes
- Opening a Cash JISA for a newborn when the money will not be touched for 18 years.
- Overlooking that only a person with parental responsibility can open the account, even if a grandparent will fund it.
- Never moving to a better provider — transfers are allowed and do not affect the £9,000 limit.
Who Should Avoid It
Parents who are not certain they can spare the money for 18 years, or who want a say in how it is spent after that, may prefer a designated account or a bare trust.
Official Sources
The rules on this page come from the following official pages and were checked on 25 September 2026. Read how we check our figures.
Related Calculators
Frequently Asked Questions
Can I withdraw before the child is 18?
No. The money is locked until the child turns 18, except in cases of terminal illness or death.
What happens at 18?
The JISA converts to an adult ISA. The child has full control and the balance does not count towards their adult ISA allowance.
Can a child have both a JISA and a CTF?
No, only one or the other. You can transfer a CTF into a JISA.