From driving lessons to their first home, having a nest egg for your little ones is the perfect gift to help them later in life.
Junior ISAs at a glance
Introduced in 2011, Junior ISAs (JISAS) are savings accounts available to any child not eligible for a Child Trust Fund.
You can set up a Junior ISA on behalf of your child. Once your child turns 16, they can manage their account. However, they cannot take money out of the account until their 18th birthday.
With a Junior ISA, all interest earned is tax-free.
To be eligible for a Junior ISA, your child should:
- Be aged under 18
- Live in the UK
There are many reasons you may be thinking about a Junior ISA over other savings options:
- Easy to open
- A tax-efficient way to save
- Anyone can make payments into a Junior ISA
- The savings can be accessed from your child’s 18th birthday, so can’t be dipped into unnecessarily
- You can easily transfer your Junior ISA across from other Junior ISA providers
- Your child can start managing their account from the age of 16
What is a Junior ISA?
A Junior ISA (Individual Savings Account) is a tax-efficient savings account designed specifically for children under the age of 18 who live in the UK.
It allows parents or guardians to save or invest money on behalf of their child without paying tax on the interest or investment returns.
These accounts can be accessed from the child's 18th birthday, at which point they gain full access to their savings. But, they can manage it themselves from their 16th birthday.
Types of Junior ISAs
There are two main types of Junior ISA, each with its own features and benefits:
| Cash Junior ISA | A Cash Junior ISA works like a standard savings account but with one key difference: the interest earned is completely tax-free. The savings also belong to the child. This option is ideal for those who want a secure way to grow their child's savings without exposure to market risks. |
| Stocks and Shares Junior ISA | A Stocks and Shares Junior ISA is a medium to long term investment and allows savings to be invested in the stock market offering the potential for higher returns over time. The value of your investments can fall as well as rise and you may not get back the original amount invested making it a riskier option. With a Stocks and Shares Junior ISA, it's always wise to speak with a financial adviser to explore options for your family's financial goals. Newcastle Building Society introduces to Newcastle Financial Advisers Limited for any advice you may need on investments. |
Can my child have both types of Junior ISA?
Yes, your child can have both a Cash Junior ISA and a Stocks and Shares Junior ISA. However, the total amount saved across both accounts cannot go over the annual Junior ISA allowance, which is currently £9,000 for the 2025/2026 tax year.
How do Junior ISAs work?
Anyone - parents, grandparents, friends, or other family members can make payment into a Junior ISA, up to the yearly allowance.
No, you don't need to declare your child's Junior ISA savings on your tax return. One of the key benefits of a Junior ISA is that all interest or investment returns are tax-free, taking away the need for reporting.
No, the money in a Junior ISA does not count as part of your income or savings when applying for benefits. This means it won't affect any benefits you receive. The Junior ISA allowance is separate to the £20,000 ISA allowance.
Though the money in the Junior ISA legally belongs to your child, it's locked until their 18th birthday. At this point, the account automatically changes into an adult ISA, giving your child full control over their savings. They can choose to take their money out or continue saving tax-free.
No, the government does not contribute to Junior ISAs. Unlike Child Trust Funds, which came with an initial government contribution, Junior ISAs rely entirely on payments made by parents, guardians, or others.
For more information on Junior ISAs, check out the official government guidance here.
Managing your child's Junior ISA
Legally, there's no need to inform your child about their Junior ISA. However, introducing them to the concept of saving early can help them develop good financial habits.
Until your child turns 16, the Junior ISA will be managed by the parent or guardian who opened the account. At 16, your child can begin to manage the account themselves, although withdrawals are controlled until they turn 18.
The Junior ISA allowance for the 2025/2026 tax year is £9,000. This means you can save or invest up to this amount across one or both types of Junior ISA - Cash ISAs and Stocks and Shares ISAs.
For example, you might choose to set aside £4,500 to a Cash Junior ISA and £4,500 to a Stocks and Shares Junior ISA, depending on your financial goals and risk preferences.
It's important to note that this allowance resets at the beginning of each tax year. If you don't use it in full by the end of the tax year, you can't carry over the unused portion - it's a 'use it or lose it' rule.
Once your child turns 18, the account will automatically turn into a normal adult ISA and, as such, your child will be able to benefit from the full annual allowance for adults, which is £20,000 for the 2025/2026 tax year.
Who can apply for a Junior ISA?
As a parent, grandparent or legal guardian, you can open a Junior ISA on your child's behalf. To apply, you must:
- Be a UK resident
- Have parental responsibility for the child.
While only a parent or legal guardian can open a Junior ISA, anyone can contribute to the account once it's set up, including grandparents, friends, or other family members.
What age can you have a Junior ISA?
A Junior ISA can be opened for children under the age of 18, but it must be opened before the child turns 18. Children aged 16 or 17 can also open a Junior ISA themselves, they can then manage the account before accessing the savings from their 18th birthday.
What happens if I or my child move abroad?
To be eligible for a Junior ISA, the child must be a UK resident. If your child lives abroad, they are not eligible for a Junior ISA, but if they move back to the UK before turning 18, they can have one opened for them.
If you, as the parent or guardian, move abroad after opening the Junior ISA, the account will stay open as long as the child is still a UK resident.
If the child becomes a non-resident, they won't be able to make further contributions, but the account can continue to grow until they reach 18.
How do I apply for a Junior ISA?
Applying for a Cash Junior ISA with Newcastle Building Society is a straightforward process, and the team is here to guide you every step of the way.
To get started, you'll need to visit a branch to open your account. When you come in, be sure to bring the following documents:
- Proof of your identity (such as a passport or driver's license)
- Proof of your child's identity (such as their birth certificate or passport)
- Proof of your address (such as a utility bill or bank statement)
Explore Cash Junior ISAs
To learn more about Cash Junior ISA products, including interest rates and terms and conditions, visit the Junior ISA page.
The minimum deposit to open an account is just £1, making it easy to begin saving for your child’s future. If you already have a Junior ISA with another provider, you can also transfer the balance.
Once your Junior ISA is open, you have a range of options for managing your account. You can make instructions in branch, by post, or over the phone, depending on what works for you.
Find your nearest branch here.
Can a child have more than one Junior ISA?
Yes, a child can have two Junior ISAs at the same time: one Cash Junior ISA and one Stocks and Shares Junior ISA. These can be with different providers, offering flexibility in how you manage your child's savings.
However, the total contributions to both accounts combined must not go over the annual allowance, which is £9,000 for the 2025/2026 tax year.
It's important to note, however, that a child cannot hold both a Junior ISA and a Child Trust Fund at the same time.
What are the differences between a Child Trust Fund and a Junior ISA?
A Child Trust Fund (CTF) is a long-term savings account set up by the government for children born between 2002 and 2011. It’s designed to help save for a child's future, with tax-free interest or investment returns, and the child cannot access the money until they turn 18. CTFs are typically managed by the government until the child turns 16, after which they can take control of the account.
In contrast, a Junior ISA is available to any child under 18 who doesn’t have a CTF. It offers more flexibility with investment options, such as cash or stocks and shares ISAs, and the child can take control of the account at 18, but not before.
It’s important to note that a child can only have one type of account, either a CTF or a Junior ISA, but not both. If your child has a CTF, you can continue to contribute to it until they turn 18. However, if you’re starting fresh or looking for more investment options, it’s worth thinking about a Junior ISA.
How to transfer a Junior ISA between providers
You can transfer your child’s Junior ISA to another provider at any time without losing its tax-free status. To transfer from another provider, simply pop into your nearest branch, who will be able to take care of this for you.
Withdrawing the money yourself could result in losing the tax-free status and may trigger tax implications so it’s important the transfer is made directly between providers.
This typically takes a few weeks, after which you can continue making contributions with your new provider.
How to close, void, or withdraw cash from a Junior ISA
Managing a Junior ISA gives you flexibility, but it’s important to understand how it works if you need to close, void, or take money out from the account.
A Junior ISA can only be closed under specific circumstances:
- The child reaching their 18th birthday
- The death of the child
- Direct instruction from HMRC (if the junior ISA is void)
- A £nil balance arises (e.g., if a small initial investment is made and no further contributions are made, or if funds are withdrawn following a terminal illness claim)
It’s also important to note that a Junior ISA cannot be closed simply because the child becomes a non-resident in the UK. Even if the child moves abroad, the Junior ISA can still receive contributions and be transferred between providers, although a new Junior ISA cannot be opened for a non-resident child. However, if the child is no longer a UK resident, you will not be able to make further contributions.
To close the account, please visit a branch or contact us for help.
A Junior ISA may be voided if there’s an issue with the account, such as an incorrect application or late submission. A voided account essentially means that it never existed, and any contributions made will be refunded. The child can then open a new Junior ISA.
If you believe your account may need to be voided, please contact us to discuss the next steps.
Withdrawals from a Junior ISA are not allowed until the child turns 18, unless for exceptional circumstances. While the account can be managed by the parent or legal guardian until then, the money stays inaccessible to both the child and the parent.
Contributions can continue to be made, and the account can grow until your child reaches adulthood.
It’s important to note that the money in the Junior ISA belongs to the child, and under no circumstances can parents access the money, either before or after the child turns 18.
For more information, please visit the official government guidance on closing, voiding or withdrawing cash Junior ISAs.
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A stocks and shares ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
HM REVENUE AND CUSTOMS PRACTICE AND THE LAW RELATING TO TAXATION ARE COMPLEX AND SUBJECT TO INDIVIDUAL CIRCUMSTANCES AND CHANGES WHICH CANNOT BE FORESEEN.
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Newcastle Building Society introduces to Newcastle Financial Advisers Limited for advice on investments, pensions, life and protection insurance, and inheritance tax planning. Aspects of inheritance tax planning are not regulated by the Prudential Regulation Authority nor the Financial Conduct Authority. Newcastle Financial Advisers is a trade name of Newcastle Financial Advisers Limited which is an appointed representative of The Openwork Partnership a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
Approved by the Openwork Partnership on 19/03/2026.