What is a Junior ISA?
Junior ISAs are long term, tax free savings accounts for children up to the age of 18 years old. Unlike normal ISAs, the money in a Junior ISA cannot be taken out until the child reaches the age of 18.
Any child who is under the age of 18, lives in the UK and is not entitled to a Child Trust Fund can save in a Junior ISA.
Any parent or legal guardian can open an account on behalf of their child. Once open, there are no exclusions on who can contribute to the ISA, so anyone from grandparents, aunties or friends can add money into the fund on the child’s behalf. Children aged 16 or over could also open an adult cash ISA at the same time as having a Junior ISA, meaning they can save even more tax-free. An adult will be responsible for managing the account until the child turns 16 when they can choose to manage the account themselves if they want to.
You can save up to £3,720 each tax year in a junior ISA. Unlike adult ISAs, however, where you’re limited to half the amount in cash, you can choose to save as much as you like in cash.