How Many Junior ISAs Can a Child Have?
Navigate Junior ISA options in the UK. Learn how many accounts a child can hold and understand the rules for effective, tax-efficient savings.
Saving for a child’s financial future is a common goal for many families, offering a way to build a financial foundation for their eventual independence. One structured approach available in certain financial systems is through tax-efficient savings vehicles designed specifically for minors. These accounts provide a protected environment for funds to grow, potentially offering significant benefits over time.
Types of Junior ISAs Available
A child can hold two types of Junior Individual Savings Accounts (ISAs) simultaneously. These include a Junior Cash ISA and a Junior Stocks & Shares ISA.
A Junior Cash ISA functions similarly to a traditional savings account, earning interest. This option is considered lower risk, as the principal amount is protected from market fluctuations. Any interest earned within this account is free from tax.
Conversely, a Junior Stocks & Shares ISA involves investing the child’s money in assets like funds, shares, or bonds. While this type of account offers the potential for higher returns over the long term, the value of investments can fluctuate, meaning the amount returned could be less than initially invested. Any profits from investments, such as capital gains or dividends, are free from tax. These Junior ISAs are distinct from adult ISAs, and a child cannot open an adult ISA until they reach 18 years of age.
Opening and Contributing to a Junior ISA
Establishing a Junior ISA for a child is typically initiated by a parent or legal guardian. This individual, known as the “registered contact,” is responsible for managing the account until the child reaches a certain age. The child must be under 18 and ordinarily resident in the relevant jurisdiction, or a dependent of a Crown servant, to be eligible for such an account.
Once the account is open, contributions can be made by various individuals. Anyone, including grandparents, other family members, or friends, can contribute funds, allowing a wider network of support for the child’s financial growth.
Information required to open an account includes the child’s full name and date of birth, along with the parent or guardian’s personal details. All money contributed to a Junior ISA legally belongs to the child. Funds cannot be withdrawn by anyone, including the parent or guardian, until the child reaches 18, except under specific, limited circumstances such as terminal illness.
Annual Contribution Limits and Fund Access
Each tax year, a limit is set for Junior ISA contributions. For the 2025/26 tax year, this annual contribution limit is £9,000. This limit applies to the combined total across both a Junior Cash ISA and a Junior Stocks & Shares ISA.
Should contributions exceed the annual limit, the excess amount is held in a separate savings account in trust for the child. This excess cannot be returned to the person who made the contribution. The relevant tax authority may contact the account holder to advise on how to rectify the overpayment, and any amount over the limit does not receive the tax advantages of the ISA.
The child gains access to Junior ISA funds at age 18. The money remains locked in the account until their 18th birthday. At this point, the Junior ISA automatically converts into an adult ISA, granting the now adult full control over the account. They can then choose to withdraw the funds or continue to invest them as an adult.