A children’s ISA is a tax-free savings or investment account for a child under 18 in the UK. Its official name is a Junior ISA, or JISA. “Children’s ISA”, “child ISA” and “kids ISA” are all everyday names for the same thing.

We’ve been providing Junior ISAs since they launched in 2011, which is how The Children’s ISA got its name. This guide covers how they work, who can open and pay into one, the 2026/27 allowance, and what happens when your child turns 18.

What is a children’s ISA?

A children’s ISA is a government-regulated account that lets families set money aside for a child without paying tax on the growth. Any interest, dividends or investment gains inside the account are free of UK income tax and capital gains tax.

Three things make it different from an ordinary savings account:

• The money belongs to the child. Once paid in, the parent or anyone else can’t take it back out.
• It’s locked until 18. Withdrawals are only allowed in exceptional cases, such as terminal illness.
• There’s an annual limit. The 2026/27 allowance is £9,000 per child.

Junior ISAs replaced the Child Trust Fund in 2011. Children born after 2 January 2011 have never been eligible for a Child Trust Fund, so a Junior ISA is the tax-free option available to them.

The two types: cash and stocks and shares

There are two types of children’s ISA, and a child can hold one of each at the same time.

Feature	Cash Junior ISA	Stocks and Shares Junior ISA
What it does	Earns tax-free interest, like a savings account	Invests in funds, shares and bonds, with tax-free growth
Risk	Low, the balance doesn’t fall	Value can go down as well as up
Suits	Shorter timeframes or very cautious savers	Longer timeframes, where there’s time to ride out market dips
Also called	Junior cash ISA	Junior investment ISA, junior shares ISA

The £9,000 allowance is shared across both. You could put £9,000 into one, or split it, for example £3,000 in cash and £6,000 in stocks and shares.

Because the money is usually locked away for many years, a lot of families choose a stocks and shares Junior ISA for at least part of it. Over 10 to 18 years, investments have historically had more time to grow than cash, though past performance is not a guide to future returns and there are no guarantees.

At thechildrensisa.com we offer a stocks and shares Junior ISA with four investment options: Defensive, Balanced, Adventurous and a Shariah-compliant fund.

Who can open one, who can pay in, and how much

Who can have one. Any child under 18 who lives in the UK. Children of Crown servants posted overseas, such as armed forces families, can also qualify.

Who can open one? A parent or legal guardian opens the account for a child under 16. Once a child turns 16, they can open and manage their own Junior ISA.

Who can pay in? Anyone. Parents, grandparents, aunts, uncles and family friends can all contribute once the account is open. Paying into a child’s Junior ISA doesn’t use up the contributor’s own £20,000 adult ISA allowance. Grandparents can’t open one themselves unless they are the child’s legal guardian.

How much. The allowance is £9,000 per child for the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027. The government has frozen it at £9,000 until April 2031. A few points to know:

• The £9,000 is per child, not per person paying in, so everyone’s contributions add up to the same limit.
• Unused allowance doesn’t carry over to the next tax year.
• Transfers from another Junior ISA or a Child Trust Fund don’t count towards the limit.
• Contributions can be one-off lump sums, regular monthly payments, or both.

When can the money be taken out?

Nobody can withdraw money from a children’s ISA before the child turns 18, including the parent who opened it. The only exceptions are if the child is terminally ill or dies.

From 16, a child can take over managing their Junior ISA, for example, choosing investments or switching providers, but they still can’t withdraw until 18.

What happens at 18?

On the child’s 18th birthday, the Junior ISA automatically becomes an adult ISA in their name, and they take full control. From then, they can:

• leave it invested and keep the tax-free status
• withdraw some or all of it
• transfer it to another ISA provider

Any new money paid in after that falls under the adult ISA rules and the £20,000 allowance. It’s worth talking to your child about the account well before 18, as the decision will be theirs.

What about Child Trust Funds?

Children born between 1 September 2002 and 2 January 2011 were given a Child Trust Fund by the government. A child can’t hold a Child Trust Fund and a Junior ISA at the same time.

If your child still has a Child Trust Fund, it can be transferred into a Junior ISA. The transfer doesn’t count towards the £9,000 allowance. Many families do this because Junior ISAs often offer a wider choice of providers and investments.

If you’re not sure where a Child Trust Fund is, our guide to tracing a lost Child Trust Fund explains how to find it. For the pros and cons of moving it, see Child Trust Fund to Junior ISA: should you transfer?, or go straight to our transfer page.

Children’s ISA or children’s savings account?

Both are ways to save for a child, but they work differently.

Feature	Children’s ISA (Junior ISA)	Children’s savings account
Tax on growth	None	Interest is usually within the child’s own personal allowance, but parental gifts earning over £100 a year in interest can be taxed as the parent’s income
Access	Locked until 18	Usually accessible, depending on the account
Investment option	Yes, with a stocks and shares Junior ISA	No, cash only
Who controls it at 18	The child	Varies by account
Annual limit	£9,000	Set by the provider

A savings account can suit money you may want to dip into, such as for school trips or a first bike. A children’s ISA tends to suit longer-term goals like university costs, driving lessons or a first home deposit, where the lock until 18 is part of the point. Our guide to the best savings accounts for babies and kids [Link: correct URL] goes into more detail.

About The Children’s ISA

The Children’s ISA Ltd is an independent Junior ISA provider based in Swinton, Greater Manchester. We’ve specialised in children’s ISAs since Junior ISAs launched in 2011, and we’re authorised and regulated by the Financial Conduct Authority (FCA No: 563043).

Our stocks and shares Junior ISA is designed to be simple:

• Four investment options. Defensive, Balanced and Adventurous funds managed by Sarasin & Partners, plus a Shariah-compliant fund managed by HSBC Asset Management.
• Low starting point. Accounts can be started from £10. [Confirm current minimums and fees from the Key Features Document]
• Family-friendly payments. Grandparents and relatives can top up the account online.
• Online management. Track investments and performance in your online account.
• Easy transfers. Move an existing Junior ISA or Child Trust Fund across via our transfer page.

You can read the full details in our Key Features Document, or apply online in around 10 minutes. You’ll need your and your child’s National Insurance numbers, your address and bank details. You can find out more about our Junior ISA at thechildrensisa.com.

Children’s ISA FAQs

Is a children’s ISA the same as a Junior ISA?

Yes. Junior ISA is the official name. Children’s ISA, child ISA and kids ISA are everyday terms for the same account.

How many children’s ISAs can a child have?

One cash Junior ISA and one stocks and shares Junior ISA at any one time. You can transfer either to a different provider without losing the tax-free status.

Do you pay tax on a children’s ISA?

No. Interest, dividends and investment growth are free of UK income tax and capital gains tax. Tax rules can change, and how they apply depends on individual circumstances.

Are children’s ISAs worth it?

It depends on your goals. The main benefits are tax-free growth and a long, locked-in timeframe. The trade-offs are that the money can’t be accessed before 18, the child gets full control at 18, and investments can fall in value. If you’re unsure, speak to a regulated financial adviser.

What is the best ISA for children?

There’s no single best option for every family. Things to compare include cash or investments, fees, the choice of funds, minimum payments, and how easily relatives can contribute.

What happens if more than £9,000 is paid in?

Providers won’t normally accept payments over the limit. If it does happen across more than one Junior ISA, HMRC may contact you to correct it.

Does the government pay into a children’s ISA?

No. Unlike the old Child Trust Fund, there’s no government contribution.