23rd September 2021

Who owns the funds in a Junior ISA?

A Junior ISA is an ideal savings option, allowing you to put money away for your child, with the added bonus that friends and family can also contribute. This really lets you secure a financial future for your child as they take their first steps towards adulthood. From helping on their first home deposit to funding driving lessons, it’s a smart move to prepare for the future.  Here at The Children’s ISA, we like to think of the Junior ISA as a long term investment into your child’s future. A smart savings option, the Junior ISA account currently offers tax-free savings of up to £9,000 per year. 

As we know most new parents are time-poor, so we wanted to share your most asked questions about Junior ISAs this month, including the ownership of the funds held in the Junior ISA.

Can parents withdraw funds from a Junior ISA?


The simple answer here is no. Funds are invested on behalf of the child and managed by the Junior ISA. Only the child whose name the account is held in can access the funds, once they reach their ‘adulthood’ aka their eighteenth birthday.

When can children access the funds? 

Your sixteen year old can become the manager of the ISA on their birthday, however, they can only access the funds once the Junior ISA becomes a standard ISA, at the ripe old age of eighteen. This will then give them full access to the funds.

Can grandparents open a Junior ISA?


No, only a child’s parent or legal guardian can open a Junior ISA account. Once this is open, the parent or guardian can share the information allowing family members, friends and grandparents to then contribute to the account.

From September 2011, when the Junior ISA was brought in, any child who is a UK resident and under the age of 18, can hold a Junior ISA Account, as long as this is opened by a parent or legal guardian. We also allow for the Child Trust Fund to be transferred over into a Junior ISA, for those born from September 2002 – January 2011.

Can I close by the child’s Junior ISA? 

No  – only the child can once they reach the age of 18. 

If you would like any more advice on Junior ISAs visit us here, or contact us here and one of our small, expert team will be in touch! 

© The Children’s ISA Ltd 2021. 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

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