Here at the Children’s ISA, we know that grandparents are often key stakeholders in investing in their grandchild’s future. We understand that for grandparents looking to provide financial security for their grandchildren, Junior Investment  ISAs offer a tax-efficient, long-term savings option. While parents typically open and manage these accounts, grandparents can play a key role in contributing towards their grandchild’s future. In this guide, we wanted to explore how grandparents can contribute to Junior ISAs and help them make the most of this investment opportunity as we move into 2025.

Can Grandparents Open a Junior ISA?

No, grandparents cannot open a Junior ISA themselves. By law, only a child’s parent or legal guardian can open a Junior ISA on their behalf. However, once the account is set up, anyone – including grandparents – can contribute to it. This makes Junior ISAs an excellent way for grandparents to help build a financial foundation for their grandchildren.

How Grandparents Can Contribute

1. Share the account details with friends and family

Once a parent or guardian opens the Junior ISA, they can share the account details, such as the bank transfer information or provider reference, with family members.

2. Understand the Annual Allowance

The government sets a yearly contribution limit for Junior ISAs – currently £9,000 per tax year (as of 2024/2025). Contributions can come from multiple sources, but the combined total cannot exceed this threshold.

3. Make Contributions

Grandparents can make one-off payments or set up regular transfers, depending on their financial circumstances.  Here at the Children’s ISA, we have made it easy to make contributions to a child’s Junior ISA account.  Many parents and grandparents often make contributions every month to the next egg to continue to grow consistently.

4. Discuss with Parents

Coordination with the child’s parents is essential to ensure contributions stay within the annual allowance. Many grandparents have more disposable income than their children and are often key contributors to and stakeholders in their grandchild’s financial future. 

Why Choose a Junior ISA for Grandchildren?

• Tax-Free Growth: Junior ISAs offer tax-free interest on savings and investments, ensuring contributions grow without deductions.

• Locked Savings: Funds are locked until the child turns 18, encouraging long-term growth and protecting contributions from early withdrawals.

• Financial Legacy: Contributions to a Junior ISA could help pay for education, housing deposits, or other significant milestones.

For grandparents who are starting to think about a meaningful financial legacy, a Junior ISA provides an efficient and regulated option.

FAQs for Grandparents

Can a grandparent set up a Junior ISA?

No, only a parent or legal guardian can open the account.

How much can I contribute?

The current limit is £9,000 per year, shared across all contributors. However, the limit can change each tax year so it is worth keeping an eye on what happens each year in the budget when it comes to tax-free savings. 

Can I manage the Junior ISA?

No, management remains the responsibility of the parent or legal guardian. However, grandparents can contribute regularly or as a one-off.

While grandparents cannot directly open or manage a Junior ISA, contributing to one remains a straightforward and impactful way to secure their grandchild’s financial future. By coordinating with parents and understanding the contribution limits, grandparents can help their grandchildren enter adulthood with a valuable savings pot. For more information on setting up or contributing to a Junior Investment ISA or the Children’s ISA in general, please get in touch.