Top junior ISAs
3.85% tax-free kids' savings
Junior ISAs (JISAs) let you save or invest up to £9,000 in the 2026/27 tax year, with the cash locked away until the child turns 18. This guide has the pros and cons of junior ISAs, how to transfer in from a Child Trust Fund, plus the top paying accounts.
Top-pick cash junior ISAs
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Top junior cash ISAs
Leek Building Society – 3.85% (post/branch only)
NS&I– 3.7% (can be opened online)
Martin Lewis: An important note about junior ISAs
If you’re locking money away in a Junior ISA until your child is 18, I’d strongly urge you to consider investing rather than saving (or, if nervous, at least invest some of it). The reason comes down to the two big 'when to invest' rules...
It should be money you don’t need to use for now. If you’re putting money in a Junior ISA, and your child isn’t almost 18 already, they can’t need it – or you wouldn’t be locking it away.
It should be money set aside long term (say, 5+ years). JISAs lock money away until they’re 18, so for most who start when their child’s young, that’s long term.
So JISAs can hit the sweet spot for when to invest.
Watch: Martin explains why to consider investing, not saving
As Martin mentioned above, a JISA by nature often hit the sweet spot for when to invest. And as, over the long term, investing will hopefully substantially out perform savings, your kids will likely have a far bigger nest egg. Martin explains this in full in his video below.
What is a Junior ISA?
You can save or invest for your child either in a normal children's savings account or within a Junior ISA (JISA).
A JISA is an account with a tax-free wrapper which an under 18 can have up to £9,000 total paid into each tax year. Once in a JISA, the money stays tax-free year after year, so for those lucky enough to max it out each year, it can rise to be £100,000s.
There are two types of JISA, one for savings and one for investing. A child can have one of each type, but the limit is still £9,000 a year in total across the two.
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Junior cash ISAs. This is simply a savings account where interest earned is tax free. The money is completely safe (provided it's in a UK-regulated provider and you've no more than £120,000 with that financial institution) and you get a defined amount of interest. The only risk is the money won't grow as quickly as inflation.
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Junior stocks & shares ISAs. Returns depend on the performance of the stocks or shares you've invested in. The general investment rule is if you're putting money away for over five years, on the balance of probability, investing will likely significantly outperform saving – and with Junior ISAs, the money is locked away for up to 18 years.
Unlike other kids' savings, JISAs must be opened by a parent or guardian with parental responsibility. At 16, the child can take control of it themselves.
How to decide if you should use a junior ISA to save for your kids
If you want to put some money away for your child and are considering a JISA, knowing when and when not to use one may help your decision...
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DON'T use JISAs for money your kids will need while they're kids. The money can't usually be withdrawn or touched until they're 18 (barring terminal illness and death), so it's only for money you're putting away for their long-term future.
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DO use JISAs for money you want to lock away until they're adults. Once money is in a JISA, it's only accessible on their 18th birthday. So it's a simple way to lock money away for their future without them (or for some grandparents, to prevent their parents) getting their hands on it. Yet on the day they turn 18, it's their money and is under their control. So, if you're putting it aside for them to use at Uni, beware they may decide to buy a Harry Styles-themed camper van instead.
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DO look at JISAs if your child may pay tax, especially if their money comes from parents. This isn't that important for smaller amounts, as most children don't pay tax. Not because they don't need to, children are mostly taxed like adults, meaning they can usually earn £12,570 from any source income tax-free. It's just most don't earn over that threshold.
Yet money given by parents is different. If a child earns £100 or more a year in interest or dividends from money gifted by a parent or step-parent, it's taxed as the parent's income, not the child's. JISAs avoid this issue, as any interest, dividends and investment gains are tax-free. See more on tax allowances for savings interest and investment income.
How do I open a junior ISA
Any child under 18 can have a junior ISA, but how you open one depends on when they were born.
Child born after 3 January 2011? Just find the top junior ISA and open it for them (or they can open it themselves at 16 or 17). Most providers require you to apply by post or prefer you to go into your local branch, though a select few do allow you to open junior ISAs online.
Child born before 2 January 2011? They’ll likely have had a Child Trust Fund (CTF) automatically opened for them by the Government. You can convert this to a junior ISA – and it’s usually a good idea. Don't know where your CTF is saved? There are an estimated one million lost funds. See how to reclaim your lost Child Trust Fund.
A small number born before January 2011 may not have had a CTF (for example, if they weren’t UK citizens at the time). If so, they can open a Junior ISA now.
When you apply for an account, you may be asked to provide proof of identity and address for yourself, proof of identity for you child, and a linked bank account in your name.
The requirements can vary depending on the provider, so make sure to check the terms and conditions. If you’re in a split family, do co-ordinate with the other parent, so you're not both opening one, which can cause problems.
Top junior cash ISAs
Below, we've listed the highest-paying junior cash ISAs open to all. However, it's always worth checking your local building society, as it may have a good branch-only offer for local customers – as a nationwide website, we can't cover all of these.
Junior cash ISAs – what we'd go for
The top rates can’t be opened online or via app. Leek Building Society pays the top rate at 3.85%, though it can only be opened and managed by post or in branch. You can transfer in from existing JISAs and Child Trust Funds.
The top online account pays less. Government-backed NS&I pays a decent 3.7% and can be opened and managed online.
Provider | Rate (AER variable) | How to open | Transfer in allowed? | Interest | Max FSCS protection |
|---|---|---|---|---|---|
Top-paying accounts | |||||
3.85% on £1+ | Post/ branch | Yes | Annually | £120,000 | |
3.8% on £1+ | Post/ branch | Yes | Annually | £120,000 | |
3.76% on £1,000+ | Post/ branch | Yes | Annually | £120,000 | |
3.75% on £1+ | Post/ branch | Yes | Annually | £120,000 | |
Top online/app accounts. Lower rate but can be opened & managed digitally. | |||||
3.7% on £1+ | Online | Yes | Annually | 100% of deposit backed by HM Treasury | |
3.56% on £1+ | App | Yes | Monthly | ||
Top junior investment ISAs
Junior investment ISAs let you invest your money in assets like shares, corporate bonds and more. There's risk involved, as the value of your assets could go down as well as up, though if you aim for a wide spread of investments, it should help mitigate the risk.
Do that and on the balance of probabilities over the long term, investing will hopefully substantially out perform savings, in which case your kids will have a far bigger nest egg.
Many worry about the volatility of markets, which is why investing for the long term is crucial. That way over time the short-term ups and downs will hopefully smooth out and you won't suddenly be having to sell on a bad day.
As the maxim goes "time in the markets beats timing the market", so it's best not look at the investment every day, as that can lead to poor decisions.
JISAs are an important tax protection for shares & funds.
The fact you invest within a JISA means any gains or dividends aren't taxable. Capital Gains Tax is the tax you pay on profits and children pay it just like adults, which means they have a £3,000 per tax year allowance. That sounds a lot for children, but the way Capital Gains works means it isn't as big as it seems.
Imagine you bought a fund for £9,000 and ten years later, it'd done well and you sold it for £30,000. The Capital Gain is £21,000. The fact you'd held it for ten years is immaterial, even if you'd never made another Capital Gain in all that time. All of it usually crystallises in the tax year you sell.
That's why Capital Gains Tax can be so big - outside an ISA you're taxed on profits above £3,000 in the year, so in a simple case £18,000 would be taxable (the rates are 18% or 24% depending on your income). Whereas in a JISA its all tax-free.
We cover taxes on investment in more detail in our Investing for beginners guide.
Where to start with an investment JISA
An easy way to invest in a broad range of assets is through funds, which are baskets of lots of different investments such as shares or bonds. Tracker funds are a good place to start – these track the performance of a specific index such as the S&P 500 (big firms on US stock market companies) or the FTSE 100 (big firms on UK stock market).
In Martin's investing for beginners podcast, Ed Marshall, Financial Planner at Deans Wealth Management told him...
"You want to be in more than the FTSE 100 or S&P 500. If you look at the MSCI world index, you've got the world's largest 2,500 companies, but then you can buy global tracker funds that will buy even more than those 2,500 shares, so instead of just 2 different companies, try and aim for 5,000+ different companies. Try and buy the world. That diversification will help to take risk off the table."
Funds and other investments are usually bought via a platform (a bit like how you buy gig tickets through a ticket website), which can be cheaper than going direct to the fund manager. There are two main types depending on how much control you want over what you invest in – DIY platforms and managed platforms.
DIY investment JISA platforms
With do-it-yourself platforms, you need to do your own research before deciding what to invest in, build your own portfolio and keep track of it. Make sure you take all charges into account – including any platform fees, fund charges, trading charges and exit fees.
We list these different costs, but we haven't taken fund charges into account. These will vary depending on which fund you pick and – to an extent – which fund platform you choose (some platforms negotiate deals with fund managers for cheaper fees).
All firms listed allow transfers in, though Fidelity doesn't allow transfers in from a Child Trust Fund.
Platform + min deposit | Annual fees | MSE analysis |
|---|---|---|
Open online, via phone or via post with £100+ or £25/mth | Management fee: none Buying shares/funds: none | Low-cost option from very well-known investment platform. Offers a huge range of funds, ETFs, investment trusts and shares to choose from with no platform or dealing fees. |
Open online with £1+ | Management fee: none Buying shares/ETFs (no funds): none | A low cost option for those happy investing in ETFs and shares. It doesn't offer traditional funds, but offers a huge range of options and no management or trading fees. You must have an adult IG account to apply. |
Open online or via app with £100+ or £25/mth | Management fee: none Buying shares/funds: £7.50 (£1.50 if part of reg savings plan)/ none | Another low cost JISA with no fund dealing charges. Offers a very broad range of funds and shares. |
Open online with £500+ or £100/mth | Management fee: 0.15% Buying funds: none | Only offers its own (mostly index-tracking) funds. Less choice but can be a cheap, simple option for long-term investing. |
Open online with £250+ or £25/mth | Management fee: 0.25%/yr (max £2.50/mth for shares, no max for funds) Buying shares/funds: £5/£1.50 | Slightly more expensive option, but well-known platform with extensive range of investment options. It also waives its dealing charges for regular investing (£25+ a month). |
Managed investment JISA platforms
For managed investment JISAs, you'll receive help to choose an investment portfolio based on your attitude to risk, as well as what your investment goals are. Robo-investors automatically pick for you from a limited range of funds (sometimes their own funds).
In general, these platforms won't be the cheapest, as you're getting all of the work done for you. But, often costs are kept relatively low as the funds which are typically chosen for investments have low management charges.
There are many managed and 'robo' platforms out there, so always do your own research. Better still, if you already have a financial adviser, speak to them. To help you on your way, we've listed a couple of the bigger names in the table below (both allow transfers in).
Platform + min deposit | Annual fees (1) (2) | MSE analysis |
|---|---|---|
Open online or via app with £500+ | Management fees: 0.3% to 0.7%/yr (min £1.25/mth) Av. fund cost: 0.11% to 0.24% | Range of ready-made portfolios, including ESG and provides access to investment consultants if you want extra guidance. |
Open online or via app with £1,000+ | Management fees: 0.6%/year Av. fund cost: 0.14% (original plan) or 0.46% (ethical plan) | Choose a risk level from cautious to adventurous and Wealthify invests your money in a managed portfolio, with a choice of standard or ethical 'themes'. |
(1) Management fees based on investments of up to £100,000, there's a lower fee for larger amounts with Moneyfarm. (2) Total average fund cost comprises fund charges + market spread.
Upcoming changes to Stocks & Shares ISA rules
From April 2027, you will be taxed at 22% on interest earned on cash held in a non-cash ISA, such as a stocks and shares ISA or innovative finance ISA. Read our full story – Cash held in stocks and shares ISAs to be hit with 22% charge on interest from April 2027.
How do I pay into a junior ISA?
You can usually deposit money into a junior ISA in the same ways you would with a normal bank account, via cash deposit in branch, cheque, a one-off bank transfer or a regular payment such as a standing order.
You can deposit a lump sum or top up your child's ISA as frequently as you like, though you can't pay in more than the £9,000 allowance per tax year.
You can also transfer an existing junior ISA to a new provider. Some (but not all) providers also allow you to transfer existing Child Trust Funds. We list whether or not providers allow this in our best buys table.
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