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Our guide to the Junior ISA

A Junior ISA is a long-term savings account set up by a parent or guardian with a Junior ISA provider, specifically for their child's future.

Available to those not eligible for a Child Trust Fund

Transfer an existing Child Trust Fund into a Junior ISA

May be held in cash and stocks and shares

Investment limit set at £9,000 for the current tax year

About the Junior ISA

There are two types available: a cash Junior ISA and a stocks and shares Junior ISA. Both can be used to make a long-term investment for your child, but the option(s) you choose will likely depend on your attitude to risk and which of the product features are most appropriate for your circumstances.

The annual subscription limit for Junior ISAs is up to £9,000 for the current tax year (that's from 6 April to 5 April the following year), but you are not limited to choosing just one type of Junior ISA - you can split the annual £9,000 subscription limit, in any proportion, across both types of account if you wish.

Over the long term, a stocks and shares Junior ISA offers the potential for larger returns. But it’s worth remembering that its value can fall as well as rise. This is normal for this kind of investment, but it does mean the child could get back less than has been paid in.

Cash is more secure, but the cost of living (inflation) generally increases over time, so if interest rates aren't higher than inflation the final amount probably won’t buy as much in the future as it could now.

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More about the Junior ISA

Eligibility

Your child is eligible for a Junior ISA if they are under 18 years of age (although some providers may have lower age limits, depending on the particular account), a resident in the UK &/or have not been eligible for a Child Trust Fund account.

Tax-efficient

A Junior ISA can be an efficient way of saving because tax isn’t paid on the returns. This means when your child turns 18, their Junior ISA won't be liable for income tax and capital gains tax deductions.

Tax advantages depend on individual circumstances and may change in the future.

How you can invest money for your child

You can open a cash Junior ISA or a stocks and shares Junior ISA, or set up one account of each kind for the same child. It's up to you how you choose to split your investment over these two accounts, but remember that the total payments that can be made into the accounts cannot exceed the current tax year limit of £9,000.

Remember that the £9,000 Junior ISA allowance is a maximum yearly subscription amount for the current tax year - you can invest significantly less than this if you wish to, either as a lump sum, or as a regular investment. Please bear in mind that any unused allowance at the end of the tax year is lost and cannot be added to the allowance for subsequent years.

Junior ISA - examples of how you could save

£10k £0
Invest £9,000 in a Cash Junior ISA
Invest £4,500 in a Cash Junior ISA
Invest £4,500 in a Stocks & Shares Junior ISA
Invest £1,000 in a Cash Junior ISA
Invest £8,000 in a Stocks & Shares Junior ISA
Invest £9,000 in a Stocks & Shares Junior ISA

What would you like to do next?

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Try our Junior ISA calculator

Use our calculator to find out how much your child could get with a OneFamily stocks and shares Junior ISA.

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Transfer to OneFamily

Transferring a Junior ISA to us is simple, and we won't charge you for making the change. Find out more.

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Start saving today

Your kids deserve a head start. Invest in their future with our stocks and shares Junior ISA for tax-free savings.