Junior ISAs were launched on 1 November 2011.
Below we've compiled some common questions about how this scheme works. We hope you find this information useful - if you have a question not covered here, please let us know and we'll aim to answer it.
If your child is under 18 and does not have a Child Trust Fund, then they are eligible to open a Junior ISA.
Children who have a Child Trust Fund can now transfer to a Junior Cash ISA if they wish.
No. The Government will not make any contributions into your child's Junior ISA.
Banks, building societies, friendly societies and other financial providers offer Junior ISAs.
A Junior ISA can be opened by anyone with "parental responsibility" for a child or, if your child is between 16 and 18, they can open their own.
Grandparents can't open a Junior ISA for their grandchildren (unless they have parental responsibility for the child). However, grandparents will be able to contribute to the account once it is opened.
You can save or invest up to £4,128 into a Junior ISA in the 2017-18 tax year (6 April 2017 - 5 April 2018).
Money in your child's Junior ISA can't be accessed until they turn 18.
The account becomes an adult ISA, preserving its tax-efficient status.
Your child can hold one cash and one stocks & shares Junior ISA at any one time.
You can choose how you allocate money between the two, so long as you don't exceed the total £4,128 limit.
Other than the annual cap there is no limit on how you choose to save – you could place the entire £4,128 in a stocks & shares Junior ISA, although you then couldn't place any money in a cash Junior ISA in that tax year (or vice versa).
Yes you will, although your child will only be able to hold one cash and one stocks & shares Junior ISA at any one time.
Yes, from April 2015 Child Trust Funds can be transferred to Junior ISAs.
How much your child's nest egg will be worth will depend on:
Until the child reaches 16, those who have parental responsibility for the child will need to manage the ISA. Once the child reaches 16, they can start to manage their own pot (although they can't make any withdrawals until they are 18).
Yes. Between the ages of 16 and 18 your child can have a Junior ISA and an adult cash ISA. Under the 2017-18 ISA limits, that means they can have £24,128 between a Junior ISA and an adult cash ISA.
At 18, the Junior ISA becomes an adult one, and your child will be able to save or invest up to the adult ISA limits only.
Compare children's savings accounts
Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
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