8th April 2021

A guide to ISAs for babies

Welcoming a new child into the world is a magical, life-changing experience, although we can safely say it’s often overwhelming at times. We’re sure you are focusing on your new arrival, and taking every moment with your little one in, the future and their adulthood seem as far away as it could be.

However planning for your new baby’s future is a smart move, and a Junior ISA offers them a nice honey pot of financial stability that could contribute to their adult lives. With money saved over the years, from yourself and family or friends, this could help fund driving lessons, a flat deposit or even an around the world trip. When your child reaches adulthood they can then take control of their ISA and their nest egg can help them on their journey.

At The Children’s ISA, our goal is to make saving, opening and managing a Junior ISA as easy as possible. This is why you can service your account online, allowing you to log in, and check your account, wherever you are, whenever you like! 

With our fuss-free approach, we are aware new parents are often strapped for time (and sleep) so we’ve highlighted the most frequently asked questions below. Giving you a brief guide to ISA’s for babies. 

What is a Junior ISA?
We find it helps to think of the Junior ISA as a long term investment into your child’s future. The Junior ISA account offers a tax-free saving of up to £9,000 per year for any child who is a UK resident and under the age of 18.

Who controls the money in an ISA for my baby?
You do. Once you have set up the account, you can share the details with family and friends for them to contribute. This is a great idea for gifts, as more often than not, we’ve found a contribution to the child’s future feels more sustainable than a throwaway plastic toy. 

Would a Stocks and Shares ISA or Cash ISA the best option?
To sum it up there are two different types of Junior ISA: The Junior Cash ISA and the Investment Junior ISA. The Cash Junior ISA works pretty much like a normal savings account (minus the income tax) and the Investment Junior ISA holds specific investments such as fixed-interest or stocks and shares. We think they are both good options, however, it is wise to consider both, to find the best fit for you and your child’s financial future.

If you are thinking of taking the stocks and shares route, we offer a wide range and we will personally work with you to find the best option for your needs. Every saver is different, whether you are looking for an actively managed ISA or a low-cost option. We also offer an ethical investment and Shariah-compliant investment ISA (which invests in line with the Islamic Investment Guidelines). Visit here, to find out more about our Junior ISA options and how they can work for you. 

What happens to my baby’s Junior ISA when they turn 18?
They will gain complete control of the account! The money saved will be theirs to spend, save or invest, setting them up for an easy, burden-free step into adulthood.  

© The Children’s ISA Ltd 2023. 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