A junior ISA is a long-term savings or investment account where the money is locked-in for the child until they turn 18.
Here's a quick breakdown of what a junior ISA is and how it works:
- Available for children under 18 (under 16 for a OneFamily Junior ISA) who don't have a child trust fund
- Only the child can access the money in their junior ISA, and only when they turn 18
- Option to transfer an existing child trust fund into a junior ISA
- Anyone can pay into a junior ISA, up to £9,000 each tax year
- Minimum direct debit of only £10 a month for a OneFamily Junior ISA
- Choose between a cash junior ISA or a stocks and shares junior ISA
What types of junior ISA are available?
There are two types of junior ISA to choose from:
- cash junior ISAs
- stocks and shares junior ISAs
Both can be used to build savings for a child, but they differ in how they aim to grow your money.
What's the difference between a cash junior ISA and a stocks and shares junior ISA?
A cash junior ISA keeps your money saved in cash, meaning it grows by building interest like savings accounts do, while money in a stocks and shares junior ISA is invested in the stock market.
Over time, stocks and shares junior ISAs have the potential to make more money. In fact, in every 10-year period since 2000, stocks and shares have out-grown interest rates.*
But the value of your investments can go down as well as up. This is normal for this kind of investment, but it does mean the child could get back less than has been paid in.
Cash junior ISAs can't go down, but they might grow less than inflation.
*Source: Barclays GILT study 2023.
Junior ISA rules and limits
Key features of junior ISAs
Are you eligible?
You can open a junior ISA for a child if they are:
- your child (or you're their legal guardian)
- under 18 years of age (under 16 for a OneFamily Junior ISA)
- a resident in the UK
- have not been eligible for a child trust fund account
What makes JISAs tax-efficient?
Your child won't pay any Income Tax or Capital Gains Tax when they take the money out, no matter how much the money has grown.
Tax advantages depend on individual circumstances and may change in the future.
How much can you pay in?
Up to £9,000 each tax year. But at OneFamily, you don't need to pay in as much as that! You can invest from as little as £10 a month.
Use our calculator to see how even a small amount can grow as your child does.
What would you like to do next?
Find out more about junior ISAs
Our guides contain everything you need to know to about investing for your child's future in a junior ISA.
Transfer to OneFamily
Transferring a child trust fund or junior ISA from another provider to OneFamily is simple and we don't charge you to do so.
Open a OneFamily Junior ISA
Give your child more options when they reach 18 with our straightforward Junior ISA. Simply choose one of our three climate-focused funds to start investing on their behalf.
Our Junior ISA invests in stocks and shares. The value is therefore likely to go up and down over time.
This is normal for this type on investment, but it means there is a risk your child could get back less than has been paid in if they withdraw at a time when the value is lower.
