There’s a good chance you’re already saving something for your child. A savings account, some Premium Bonds, maybe a bit tucked away in your own account “for them”.
What most parents haven’t done is open a Junior ISA – an account where savings can grow tax free.
The latest figures suggest only around one in seven UK children had an active Junior ISA in 2023/24 – one that was paid into that year, rather than simply being open. The total number of children with an account will be higher, as not every Junior ISA is paid into every year. Even so, it points to a lot of families who either haven’t opened one or have an account that’s gone quiet.
So what exactly is a Junior ISA, and what makes it different from some of the other ways families save for children?
What a Junior ISA actually is
A Junior ISA (JISA) is a savings account opened by a parent or guardian, in the child’s name, for the child’s own money. It comes in two forms: cash, where the money sits and earns interest, and stocks and shares, where it’s invested. You can also split the allowance across both if you want.
The money belongs to the child from the moment it goes in. It’s locked until they turn 18, at which point it becomes theirs to keep, spend or move. As the parent or guardian, you manage the account to begin with – topping up whenever you like, watching the balance grow and deciding how much of the annual allowance to use. From age 16, your child can choose to take over managing the account themselves, though the money stays locked away until they turn 18 either way.
That allowance is £9,000 for the 2026/27 tax year, shared between however many Junior ISAs the child holds. A child can hold one Cash Junior ISA and one Stocks and Shares Junior ISA at a time, and the £9,000 is shared between the two rather than being a separate £9,000 for each. You don’t have to use all of it, and you don’t have to pay in every month. Whatever interest the money earns stays tax free for as long as it’s in the Junior ISA.
So why haven’t more parents opened one?
There are a few things that can make Junior ISAs easy to overlook.
“I thought that was for people with more to put away.” You don’t have to use the full annual allowance or commit to paying in every month.
“Isn’t that the stocks and shares thing? I don’t want to risk it.” There are two types of Junior ISA. A Cash Junior ISA holds cash and earns interest, while a Stocks and Shares Junior ISA invests the money.
“I’ve got a Child Trust Fund already, isn’t that the same thing?” They have similarities, but they’re different products. Child Trust Funds were phased out for new accounts back in 2011, and most families with one can transfer it into a Junior ISA.
“I’ll get round to it.” Unlike some financial decisions, opening a Junior ISA doesn’t necessarily come with an obvious moment when it needs to happen. So it can be easy to leave on the list. With a Cash Junior ISA, money starts earning interest once it’s paid in – and that interest can then earn interest too. A Stocks and Shares Junior ISA works differently, since its value can go down as well as up.
The decision isn’t only about how much you save
The £9,000 annual allowance is a maximum, not a target. How much goes into a Junior ISA – and how often – is up to you.
That matters because saving for a child can look very different from one household to another. It might mean regular contributions, occasional payments or simply deciding that this isn’t something you want to prioritise at the moment.
The important distinction with a Junior ISA is what happens once the money goes in. It belongs to the child and stays locked away until they turn 18.
Opening a Junior ISA doesn’t mean deciding how much you’ll save for the years ahead. You can decide whether the account works for you, then choose how much to put in and when.
What happens if you wait?
There’s no penalty for not opening a Junior ISA and no requirement to use the allowance. But the annual allowance applies by tax year. Any unused allowance isn’t carried forward into a future tax year.
Time can also make a difference to how savings grow. With a Cash Junior ISA, interest is added to the savings and can then earn interest too. So the longer money is in the account, the more time it has to earn interest. Exactly how much it grows will depend on how much is paid in and the interest rate over that time.
JISA at OakNorth
At OakNorth, we believe putting money aside for a child’s future should feel straightforward, whether you’re starting with a little or have more to save. That’s why we recently launched the OakNorth Junior Cash ISA.
You can open an account from £1 and save up to £9,000 each tax year, with the money earning 3.73% AER variable tax-free interest. The parent or guardian manages the account while the child is young. They can take control at 16, but the money stays locked away until they turn 18. We can currently only open accounts for children under 14, and we’re not yet able to accept transfers in from a Child Trust Fund – we’ll update this if that changes.
Your eligible deposits with OakNorth are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per eligible person, per bank, across your total eligible deposits. This article is general information, not financial advice, and doesn’t take into account your personal circumstances. Tax treatment depends on individual circumstances and may be subject to change in the future.
This article was last updated on 23 October 2026. Bank Rate and inflation figures were correct at the time of publication and may have changed since.
