21st August 2020

The Children’s ISA: Progress now your child has turned four

Children, as wonderful and life changing as they are, aren’t easy on the bank balance. This is especially true for parents who want to support their kids later in life, when your focus right now is on their current wants and needs. This is why a Junior ISA is a smart choice when it comes to putting money aside for your child’s future.

We’re here to help highlight how and where your money might go further if you choose to invest with the Children’s ISA and join many others (nearly a million junior ISA accounts were paid into in the 2018/19 tax year) who are thinking long term about their children’s financial future.

To help you get a better idea of the potential of your investment, we’re taking a look at a typical savings scenario, and how you, and eventually your child, could make the most of this. Whether you are using a Junior ISA to, potentially, cover university costs or even a house deposit. But that’s some way off, so what exactly could happen by the time your child turns four? At what financial position could their ISA be in?

Hypothetically, and based on projected figures, if you paid £50 a month into the account, four years of investment would equate to around £2,600. Not too bad, and your four year old already has a substantial nest egg.

However, if you were joined in your investment by a grandparent, family member, close friend or godparent and they matched your contribution and also paid in £50 a month, by the time your little one is four, you would hold £5,301.49 in their ISA. This kind of figure is easily achievable, as when you or a family member open an account with us, you are allowed to acquire as many contributors as you would like. This is extremely useful when it comes to families who would prefer to invest rather than give the traditional ‘here today, in landfill tomorrow’ birthday and Christmas gifts, or even alongside them, to build towards a child’s future.  What’s more, you can check your valuation online, at any time, and we’ve created a tool to allow you and your friends and family members to top up the account with ease. 

Regular saving into a Junior ISA opens a new world of possibilities. For instance what could happen if a grandparent started matching your contribution until they’re 18? We’ve added an easy calculator here – so you can try and test out future projections for a Junior ISA. Please do keep in mind that past performance is not necessarily a guide to future performance and the value of your investment may fall as well as rise, and any income received in the form of dividends may fluctuate.

We’re here to help highlight how and where your money might go further, as our dedicated team at The Children’s ISA are always watching what’s on the horizon.

© The Children’s ISA Ltd 2025. All rights reserved.

The website and the information contained therein should not be regarded as an offer or solicitation to conduct investment business in any jurisdiction other than the UK. Past performance is not necessarily a guide to future performance and the value of your investment may fall as well as rise, and any income received in the form of dividends may fluctuate. You may not get back the full amount when the account is closed. If paying regular monthly contributions please bear in mind that if contributions are not maintained you will be less likely to achieve the investment amount that was originally projected.

The information on this website is not advice, it is provided solely to enable you to make your own investment decisions. The investments and /or investment services referred to may not be suitable for all investors.

The Children’s ISA Limited is authorised and regulated by the Financial Conduct Authority. (FCA No: 563043)
The Children’s ISA Limited is a company registered in England and Wales. Registered Company Number: 07486015

Registered Office: Unit 2, Digital Park, Pacific Way, Salford Quays, M50 1DR