A junior isa – junior Individual Savings Account (JISA) is a type of tax-advantaged savings account that is available to children in the United Kingdom. JISAs are designed to help parents and guardians save for their children’s future and are a tax-efficient way to save for a child’s education, first home, or other long-term financial goals.
There are two types of JISAs: a cash ISA and a stocks and shares ISA. A cash ISA is a savings account that pays interest on the money deposited, while a stocks and shares ISA is an investment account that allows the money to be invested in stocks, bonds, and other securities.
Any UK resident under the age of 18 who is not eligible for a Child Trust Fund (CTF) is eligible for a JISA. Parents, guardians, and certain other adults are able to open a junior ISA on behalf of a child, and the child becomes the owner of the ISA once they reach the age of 18. At that point, the child is able to take control of the ISA and decide how to use the funds.
There are limits to how much can be contributed to a junior ISA each year. As of 2021, the annual limit for a junior ISA is £9,000.