Junior ISAs are one of the most popular ways to save money for a child's future.
In fact, in the 2022/2023 tax year, £1.5 BILLION was paid into junior ISAs by UK parents*.
So, what makes them so popular? Here are just six reasons to choose a junior ISA.
1. Junior ISAs are tax-exempt
Like all ISAs, junior ISAs are tax-exempt. This means when your child won’t have to pay any tax on the money they take out after they turn 18, no matter how much the money you've paid in has grown.
Tax advantages depend on individual circumstances and may change in the future.
2. Junior ISAs can't be accessed until the child turns 18
At 18, your child will (hopefully!) have some idea of how they could use their junior ISA money to build the future they want.
Or at least they're less likely to choose to spend it all on sweets and games as they might have done at 12!
When they turn 18, they'll be able to choose to keep investing their money for a future goal or withdraw some (or all) of the money straight away.
3. Anyone can pay into a child’s junior ISA
Only someone with parental responsibility can open the junior ISA, but anyone can pay in.
This is one of the best benefits of a junior ISA, as family and friends can all help build your child's future (and it's an easy birthday present if anyone's struggling!). After all, it takes a village to raise a child.
4. Paying into a junior ISA doesn't affect your ISA allowance
You can pay up to £9,000 each tax year into a child's junior ISA(s) without touching your own annual ISA allowance.
5. Your child's junior ISA doesn't affect your benefits
As the money in a junior ISA is locked-in for the child and the account is in their name, it won't affect the parent's ability to claim means-tested benefits, such as Universal Credit.
But it could affect your child's eligibility for these benefits after they turn 18, depending on how much money is in the account.
6. You can choose a cash junior ISA or a stocks and shares junior ISA
One of the main benefits of junior ISAs, especially compared to other types of child savings accounts, is that you get the option to save in cash or invest.
If you open a junior ISA for your child on the day they’re born, you’ll likely be putting money away for 18 years. That's a long time for that money to grow! So, it’s important to think about how you can get the best growth on their junior ISA.
- With a cash junior ISA, the money grows by building interest.
- With a stocks and shares junior ISA, the money is invested with the aim of growing through investment returns.
Money held in stocks and shares accounts tends to have more potential to grow, especially over the long-term, than money saved in cash. In fact, in every 10-year period since 2000, stocks and shares have out-grown interest rates*.
The amount in a stocks and shares junior ISA is likely to go up and down over time, which is normal for this type of investment, but it does mean that there is a risk your child could get back less than has been paid in.
Cash junior ISAs can't go down, but they may grow by less than inflation, if the interest rate is lower.
That's why at OneFamily, we offer a stocks and shares junior ISA.
*Source: Barclays GILT study 2023.
*Facts checked November 2025
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.