Why Use a Junior ISA?

Saving into a JISA is a great way to:

• Teach children about money and investing

• Build a meaningful pot for university, a first home, or travel

• Use up valuable tax-free savings allowances

Even small monthly contributions (e.g. £25 or £50) can grow significantly over time, especially in a Stocks & Shares ISA.

Example:

If you invested £50/month from birth to age 18 with a 5% annual return, your child could have over £17,000 by age 18.

Who Can Pay In?

Anyone—parents, grandparents, friends—can contribute to a child’s JISA or CTF, as long as total payments don’t exceed £9,000 in a tax year. Please note a child can’t have both a CTF and a Junior ISA.

What Happens at Age 18?

At 18:

• The JISA or CTF can either be converted into an adult ISA or the money can be withdrawn.

• The money becomes legally the child’s to manage or withdraw.

You can’t stop them from accessing it, so it’s important to involve them in the process and educate them on managing money wisely.

How to Open or Transfer a Junior ISA

You can open a Junior ISA with:

• High-street banks and building societies (for Cash JISAs)

• Online platforms like Vanguard, Hargreaves Lansdown, AJ Bell, Quilter (for investment JISAs) and also high street banks

If your child has a CTF:

• Compare charges and investment options

• Request a CTF to JISA transfer through your chosen JISA provider

There’s no penalty for switching, and it often improves flexibility and choice.

Final Thoughts: A Simple, Powerful Gift

Junior ISAs and Child Trust Funds are more than just savings accounts—they’re long-term gifts that can give your child a head start in adulthood. By starting early, choosing the right product, and contributing regularly, you can help them build a strong financial foundation.

Quick Recap

• Junior ISAs: Tax-free, £9,000/year limit, two types (cash & stocks)

• Child Trust Funds: Legacy accounts—still valid, but can be transferred

• Ideal for long-term savings like education or house deposits

• Anyone can contribute, but the child gets control at 18

The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

ISA investors do not pay any personal tax on income or gains, but ISAs may pay unrecoverable tax on income from stocks and shares received by the ISA managers. Tax treatment varies according to individual circumstances and is subject to change.

Approver Quilter Financial Services Limited Sept 2025