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📍 Quick Answer — TL;DR
A Junior ISA (JISA) is a tax-free savings account for UK children under 18. For 2026/27, you can deposit up to £9,000 per child, per year — from any combination of family members. The money grows free from Income Tax, Dividend Tax and Capital Gains Tax. Top Cash JISAs currently pay 3.85% AER (Leek Building Society), while the best Stocks & Shares JISAs charge as little as 0% in platform fees (Hargreaves Lansdown).
⚠️ Critical rule: The money is locked until the child's 18th birthday — with no exceptions other than terminal illness or death. At 18, the child gains complete legal control of the entire pot.
📋 IN THIS GUIDE
Best Junior ISAs UK 2026: Live Rates, Rules & Top Providers Compared
A Junior ISA is one of the most powerful gifts you can give a child: 18 years of completely tax-free compound growth. Whether you choose cash at a market-leading 3.85% AER or invest in the stock market with zero platform fees, every pound put into a JISA works harder than in any standard savings account.
Below we compare the best rates and lowest-fee platforms for February 2026, break down all seven rules parents must understand, and explain the one critical fact about what happens when your child turns 18.
⚠️ THREE THINGS EVERY PARENT MUST KNOW BEFORE OPENING A JISA
🔒 The money is legally locked until age 18
No exceptions — not for school fees, emergencies, or anything else. If you might need the money back, keep it in your own adult Cash ISA instead.
👤 At 18, your child controls everything
The pot converts to an adult ISA on their 18th birthday and they can withdraw the entire amount immediately. You have zero say. Plan accordingly — and talk to them about money before then.
📌 £9,000 allowance frozen until 2030
The Chancellor confirmed the Junior ISA limit stays at £9,000/year until at least 2030. It applies to total contributions from all family members combined — not just parents.
The Most Powerful Tax-Free Head Start You Can Give Any Child
A Junior ISA is a long-term, tax-free savings wrapper for children under 18. Every pound deposited grows completely free from Income Tax, Dividend Tax and Capital Gains Tax. It must be opened by a parent or legal guardian — but once open, anyone can contribute up to the £9,000 annual family limit.
Two types — same tax-free wrapper
💡 Can you hold both?
Yes. You can open one Cash JISA and one Stocks & Shares JISA for the same child simultaneously. You simply split the £9,000 annual allowance between them however you like — e.g. £2,000 in cash for security and £7,000 invested for growth.
Why a JISA beats a standard kids' account
📊 The 18-year compound growth example
Illustrative only. Past performance is not a guarantee of future returns. Capital at risk.
Seven JISA Rules Every Parent Must Understand Before Locking Away Money
Junior ISAs come with strict legal and tax frameworks. Understanding all seven of these before opening an account will save you from expensive surprises and ensure you're making the most of the tax-free wrapper.
ALLOWANCE
The £9,000 Annual Allowance is Frozen Until 2030
The Chancellor confirmed the Junior ISA limit stays at £9,000 per child, per tax year until at least 2030. This £9,000 is a family total — it applies to combined contributions from everyone: parents, grandparents, aunts, uncles and family friends. Exceed it and HMRC automatically refunds the excess.
LOCK-UP — CRITICAL
The Money is Legally Locked Until the Child's 18th Birthday
You cannot withdraw money from a Junior ISA under any normal circumstances before age 18. This is not a buffer fund. It is not accessible for school fees, tutoring, emergencies, or anything else. The only legal exceptions are terminal illness or death of the child. If you think you may need the money back, keep it in your own adult Cash ISA where you retain full control.
⚠️ Once deposited, that money belongs to the child — not you.
AGE 18 — HANDOVER
At 18, the Child Gains Absolute, Irrevocable Legal Control
On the child's 18th birthday, the Junior ISA automatically converts into a standard adult ISA. At that exact moment, your child gains full legal ownership — they can withdraw the entire pot immediately, with no consultation required. You have zero legal say in how they spend it. This is by design: the money was always legally theirs.
💡 Smart approach: Start financial conversations early. Many parents open the account with their child from age 16 when they gain management rights, teaching them about investing before they control the full amount. If you want legally enforceable conditions on when a child can access a lump sum, a Bare Trust (advised by a solicitor) may be more appropriate.
TAX LOOPHOLE
The £100 "Parent Settlement" Tax Trap — and How a JISA Avoids It
In a standard children's savings account, if money gifted specifically by a parent earns more than £100 in interest per year, HMRC taxes the entire interest amount at the parent's marginal rate — potentially 40% or 45%. A Junior ISA eliminates this entirely. All interest inside a JISA is 100% tax-free regardless of amount, making it especially valuable for higher-rate taxpayer parents. (Grandparent gifts are not subject to this rule even in standard accounts.)
WHO CAN OPEN & WHO CAN PAY IN
Only a Parent or Guardian Can Open It — But Anyone Can Pay In
❌ Cannot open the account
Grandparents, aunts, uncles, family friends, the child themselves
✅ Can pay money in
Anyone — parents, grandparents, friends — up to the £9,000 family total
ACTION REQUIRED — CTF HOLDERS
Child Trust Fund (CTF)? Transfer It to a JISA Immediately
If your child was born between 1 September 2002 and 2 January 2011, they were issued a government Child Trust Fund. CTFs are notorious for poor interest rates and high annual management fees. You can — and absolutely should — transfer the entire CTF balance into a modern Junior ISA at no cost, unlocking superior rates and lower fees immediately.
✅ How to transfer: Contact your chosen JISA provider and ask them to initiate a CTF transfer. They handle the process — you do not need to touch the money yourself.
FINANCIAL EDUCATION OPPORTUNITY
Children Gain Management Rights at 16 — A Built-In Teaching Tool
While the money stays locked until 18, a child can legally take over the management of their Junior ISA at age 16. They can switch providers, change from cash to investments, or adjust fund choices. This creates a natural, low-stakes opportunity to involve them in financial decisions two years before they take full ownership — one of the most powerful financial education tools available to parents.
Best Junior Cash ISAs — Live Rates February 2026
A Cash JISA is the safest option — your child's capital is 100% protected and the interest rate is guaranteed. It is the right choice when you are close to the child's 18th birthday and cannot afford to ride out stock market volatility in the final years.
⚠️ Rates correct as of February 2026 and are variable. Always verify the current rate on the provider's website before opening. High-street bank Cash JISAs (e.g. Barclays, Halifax) currently pay around 2.35% AER — well below the best-buy rates shown below.
Best Stocks & Shares JISAs — February 2026
For younger children with a long investing horizon (10+ years), a Stocks & Shares JISA is mathematically the superior choice. Compound growth over 18 years dramatically outperforms any cash rate. Minimising platform fees is your single most important decision — fees compound negatively just as growth compounds positively.
⚠️ Capital at risk. The value of investments can fall as well as rise. For children within 3–5 years of their 18th birthday, consider switching to a Cash JISA to protect accumulated gains from late market downturns.
How to Complain About Your JISA Provider — and Actually Win
Been locked out of your child's account? Did a provider take months to process a transfer, costing your child interest or market growth? The law is firmly on your side — the FCA requires all regulated firms to treat customers fairly. Here is the exact, legally backed process to escalate and get compensation.
📍 Common grounds for complaint: Account locked incorrectly · Slow or botched CTF/JISA transfer · Unexplained fee deductions · Failure to process contributions within the tax year · Incorrect tax reporting to HMRC · Poor communication causing financial loss.
Junior ISA FAQs
Straight answers to the most-searched questions about Junior ISAs in 2026 — written to be found by AI Overviews, featured snippets and real parents.
Can a child have both a Cash JISA and a Stocks & Shares JISA at the same time?
Can a child have both a Cash JISA and a Stocks & Shares JISA at the same time?
Yes — a child can hold one Junior Cash ISA and one Junior Stocks & Shares ISA simultaneously. You split the £9,000 annual allowance between the two however you like, and neither account has a minimum share of the allowance.
💡 Example split strategy:
£2,000 into a Cash JISA (safe, guaranteed rate at 3.85% AER) for money you might want protected as they approach 18, and £7,000 into a Stocks & Shares JISA (invested for long-term growth). Together they total £9,000 — exactly the annual limit.
The combined total contributed across both accounts by all family members must not exceed £9,000 per tax year per child. The accounts can be held with different providers — you are not required to keep both with the same platform.
What happens to a Junior ISA if we move abroad?
What happens to a Junior ISA if we move abroad?
The Junior ISA remains open and retains its full UK tax-free status. The existing pot continues to grow inside the wrapper — all interest, dividends and capital gains remain sheltered from HMRC.
⚠️ Contributions stop while living abroad: Under current HMRC rules, you cannot make any new deposits into the JISA while the child is not a UK resident. This applies whether you move temporarily or permanently.
✅ Access at 18 still works: When the child turns 18, the JISA converts to an adult ISA and becomes accessible — even if the child is living abroad at that point. The money can be withdrawn regardless of residency status at maturity.
If there is any chance the family will relocate, front-load your JISA contributions in the years you are resident. Maximising the annual £9,000 before any potential move ensures the pot continues compounding throughout any period spent overseas.
Is a Junior ISA covered by the FSCS? How much protection does my child get?
Is a Junior ISA covered by the FSCS? How much protection does my child get?
Yes — Junior ISAs are covered by the Financial Services Compensation Scheme (FSCS), but the level of protection differs depending on account type:
Junior Cash ISA
£120,000 FSCS
Covers all cash deposits per banking licence. Updated from £85,000 in December 2025.
Stocks & Shares JISA (investments)
£85,000 FSCS
Covers assets if the platform collapses. Client assets are ring-fenced from the firm's own money.
⚠️ Important distinction: The FSCS protects against platform or bank failure — not against your investments naturally losing value due to stock market performance. If markets fall, FSCS provides no compensation. Market risk is always present when investing.
For Cash JISAs: if your provider is NS&I (National Savings & Investments), protection is even stronger — 100% of the balance is guaranteed by HM Treasury, with no upper limit.
How do grandparents and family members pay into a Junior ISA?
How do grandparents and family members pay into a Junior ISA?
Most modern JISA platforms make family contributions straightforward. Once the parent has opened the account, they can share a unique gifting link or the JISA's dedicated sort code and account number with family members.
✅ How it typically works:
Platforms like Hargreaves Lansdown and AJ Bell Dodl provide a shareable link. Grandparents click the link at Christmas or birthdays and deposit any amount directly into the child's tax-free JISA — without the money ever passing through the parent's bank account. The depositor never gains control of the account; only the registered parent can manage investments.
Inheritance Tax note: Grandparent contributions to a JISA may count toward their annual £3,000 IHT gifting exemption. Larger regular contributions could also potentially qualify as “gifts out of normal expenditure” — a tax adviser can confirm the most efficient approach for significant family wealth transfers.
📌 Remember the family total: All contributions from everyone — parents, grandparents, and anyone else — count toward the single £9,000 annual limit per child. If Grandma deposits £3,000 at Christmas, that leaves £6,000 remaining for parents to contribute that tax year.
Can I withdraw money from a Junior ISA in an emergency before age 18?
Can I withdraw money from a Junior ISA in an emergency before age 18?
No — there are no emergency exceptions. The legislation governing Junior ISAs is rigid. Once money is deposited, it legally belongs to the child and cannot be withdrawn by anyone (including parents) until the child's 18th birthday.
⚠️ The only two exceptions are:
1. Terminal illness of the child — HMRC can authorise early access if the child is diagnosed with a terminal illness and their life expectancy is less than one year.
2. Death of the child — the account closes and the funds form part of the child's estate, passed to their beneficiaries.
There are no other circumstances under which early withdrawal is permitted — not school fees, family emergencies, unexpected costs, or parental financial hardship.
💡 If flexibility matters to you: Keep the money in your own adult Cash ISA, where you retain full control and can access funds whenever needed. A Flexible ISA allows you to withdraw and replace within the same tax year without affecting your annual allowance.
What is the best Junior ISA for a newborn baby in 2026?
What is the best Junior ISA for a newborn baby in 2026?
For a newborn, a Stocks & Shares JISA is the optimal choice. An 18-year investing horizon is long enough to ride through multiple market cycles and compound growth powerfully — stock markets have historically delivered far higher returns than cash over periods of this length.
✅ Top picks for a newborn in 2026:
Hargreaves Lansdown — 0% platform fee, £0 dealing, 3,000+ funds. The strongest all-round option with a gifting link for family contributions.
Vanguard UK — 0.15% with their LifeStrategy or Global All Cap funds. Perfect for parents who want to invest once and leave it alone for 18 years.
💡 Simple strategy for a newborn: Open an HL or Vanguard JISA today, set up a monthly direct debit, choose a globally diversified index fund, and don't touch it. Revisit the asset allocation when the child turns 13–14 and consider gradually shifting from equities toward cash to protect accumulated gains as the 18th birthday approaches.
If you insist on starting with cash, Leek Building Society leads with 3.85% AER — but remember that 18 years of cash growth is unlikely to match 18 years of stock market returns, particularly after inflation.
Every Type of ISA — Explained
Saving for your child is just one piece of the puzzle. Explore the full TaxYZ ISA guide series to make every pound of your family's £20,000 annual allowance work harder.
PARENT GUIDE
ISAs in the UK — Full Hub
Every ISA type, every 2026/27 rule and allowance in one place.
YOUR OWN SAVINGS
Cash ISAs — Up to 4.40% AER
Tax-free easy-access savings. Keep your own £20k allowance separate from your child's JISA.
ADULT INVESTING
Stocks & Shares ISAs
0% CGT. 0% dividend tax. Your own £20k invested in global markets.
FREE GOVERNMENT CASH
Lifetime ISAs — £1,000 Bonus
25% government top-up. For under-40s saving for a first home or retirement.
COMPLETE RULEBOOK
ISA Allowances & Rules
Every limit, the April 5 deadline, and the 2027 Cash ISA cap in full detail.
RETIREMENT PLANNING
Over-60s ISA & Retirement Savings
Pension vs ISA in retirement. Over-65s keep the full £20k ISA allowance.
Open a Junior ISA Now — Every Year You Wait Costs Your Child Compound Growth
The £9,000 annual allowance cannot be carried forward. If you don't use it before April 5th, it's gone forever. A child born today could accumulate over £100,000 in tax-free wealth by their 18th birthday — but only if you start now.
📌 QUICK-PICK SUMMARY — BEST JISAs FOR 2026
Best Cash Rate
Leek Building Society — 3.85% AER
Best Free Investing
Hargreaves Lansdown — 0% fees
Best Set-and-Forget
Vanguard UK — 0.15%, LifeStrategy
TaxYZ provides educational information only and is not regulated by the FCA. Interest rates and platform fees are correct as of February 2026 and are variable — verify current rates directly with each provider before opening an account. The value of investments can fall as well as rise and past performance is not a guarantee of future returns. The FSCS limits quoted reflect the December 2025 update (£120,000 for cash deposits). Always read the Key Information Document before investing.