Junior ISA Allowance 2025-26 | Rules & Best Rates

Q: What is the Junior ISA allowance for 2025-26?

The Junior ISA (JISA) annual subscription limit for the 2025-26 tax year is £9,000. This is the maximum that can be paid into all Junior ISAs held for a child in a single tax year (6 April 2025 to 5 April 2026). The allowance covers both Cash JISAs and Stocks and Shares JISAs combined. If a child holds one of each type, contributions across both must not exceed £9,000 in total in any tax year.

Q: Who can open a Junior ISA?

A Junior ISA can be opened by a parent or guardian with parental responsibility for a child who is under 18 and lives in the UK. The child must not have a Child Trust Fund (CTF) account — if they do, you must transfer the CTF to a JISA before opening one. The account is in the child's name and they become the legal owner. From age 16, the child can manage the account themselves, but cannot withdraw from it until they turn 18.

Q: Can grandparents contribute to a Junior ISA?

Yes. Anyone can contribute to a child's Junior ISA — grandparents, other family members, friends, and well-wishers. However, contributions must be made into the account, not to the account holder directly, and the total from all contributors must not exceed the £9,000 annual allowance. Only a parent or guardian with parental responsibility can open the account; others cannot open a JISA on a child's behalf, but they can pay into an existing account.

Q: What happens to a Junior ISA when the child turns 18?

When the child turns 18, the Junior ISA automatically converts into an adult ISA. The child (now an adult) has full access to withdraw the money or continue saving into the ISA within the adult annual allowance (£20,000 for 2025-26). The conversion happens automatically and the money remains tax-free. The new adult ISA is in the same provider as the JISA unless the individual chooses to transfer it.

Q: Cash JISA or Stocks and Shares JISA — which is better?

For most children with a long investment horizon (10+ years until they turn 18), a Stocks and Shares JISA has historically outperformed a Cash JISA significantly. Over 18 years, even modest equity growth tends to substantially exceed savings account interest rates. However, Stocks and Shares JISAs carry investment risk and their value can fall. A Cash JISA provides certainty and is better suited to shorter time horizons or risk-averse families. Many parents hold one of each type to benefit from both.

Q: How much could a Junior ISA be worth at 18?

If parents contribute the full £9,000 each year from birth to age 18, a Stocks and Shares JISA growing at 7% per year (roughly a long-term equity market return) would be worth approximately £305,000 at age 18. At 5% growth it would be worth around £250,000. Even smaller contributions compound significantly: £100/month (£1,200/year) at 7% over 18 years grows to approximately £43,000. These are illustrative figures and actual returns vary.

Last updated: February 2026 | Author: Mustafa Bilgic (MB)

2025–26 JISA Allowance: £9,000 per child, per tax year. Contributions from parents, grandparents and anyone else combined must not exceed this limit. Growth and withdrawals at 18 are completely tax-free.

Junior ISA Growth Calculator

See how much a Junior ISA could be worth when your child turns 18.

Child's Current Age (years)

The account closes and converts to an adult ISA at age 18.

Annual Contribution (max £9,000)

Total contributions from all sources (parents, grandparents, family) combined must not exceed £9,000 per tax year.

Existing JISA Balance (£) Type of Junior ISA

Stocks & Shares returns are not guaranteed. Past performance is not a guide to future returns. Cash rates shown are illustrative.

What is a Junior ISA?

A Junior Individual Savings Account (Junior ISA or JISA) is a long-term, tax-free savings account for children who are under 18 and living in the UK. Introduced in November 2011 to replace the Child Trust Fund, it allows families to build a tax-free pot of money for their child that the child can access when they turn 18.

There are two types of Junior ISA: Cash Junior ISAs, which work like regular savings accounts but with tax-free interest, and Stocks and Shares Junior ISAs, which invest the money in funds, shares, or bonds with the potential for higher but variable long-term returns. A child can hold one of each type simultaneously.

The key features that make JISAs attractive are their tax efficiency (no income tax on interest or dividends, no Capital Gains Tax on gains), the long investment horizon available from birth to age 18, and the ability for anyone — parents, grandparents, other family — to contribute to the same account.

Junior ISA Annual Allowance 2025–26

The Junior ISA subscription limit for the 2025–26 tax year (6 April 2025 to 5 April 2026) is £9,000 per child. This is an increase from the original £3,600 limit when JISAs launched, reflecting the government's commitment to encouraging long-term children's savings.

Tax Year	JISA Annual Allowance
2020–21	£9,000 (doubled from £4,368)
2021–22	£9,000
2022–23	£9,000
2023–24	£9,000
2024–25	£9,000
2025–26	£9,000

The £9,000 allowance applies across all Junior ISAs the child holds. If a child has both a Cash JISA and a Stocks and Shares JISA, the combined contributions to both must not exceed £9,000 in any single tax year.

Who Can Open a Junior ISA?

A Junior ISA can be opened by a parent or guardian with parental responsibility for a child who:

Is under 18 years old
Lives in the UK
Does not already have a Child Trust Fund (CTF) — if they do, the CTF must be transferred to a JISA first

Once the account is open, anyone can contribute to it — grandparents, aunts, uncles, family friends, and the child themselves once they are old enough. The account holder (the child) cannot withdraw money until age 18; from age 16, they can manage the account (choose investments, transfer providers) but still cannot make withdrawals.

Cash JISA vs Stocks and Shares JISA

Feature	Cash Junior ISA	Stocks & Shares Junior ISA
Returns	Fixed interest rate (currently 3.5–4.8%)	Variable — linked to market performance
Risk	Low — capital protected up to £85,000 (FSCS)	Medium to high — value can fall
Historical long-run return	Follows base rate trends	7–9% per year (UK/global equities)
Best for	Short time horizon (child near 18)	Long time horizon (child young)
Access to investments	Not applicable	Funds, shares, ETFs, bonds
Tax on interest/gains	None	None
Can transfer to other type	Yes (once per year)	Yes (once per year)
Typical provider examples	Coventry BS, Nationwide, Skipton BS	Vanguard, Hargreaves Lansdown, AJ Bell

For children who are young (under 10), most financial planners suggest that a Stocks and Shares JISA is likely to produce significantly better outcomes over an 8–18 year horizon, because equity markets have historically outperformed savings rates over long periods. For children closer to 18, a Cash JISA offers certainty and protection against a market downturn at the point of withdrawal.

JISA Growth Projections: £9,000 per Year

The table below shows how a fully-funded JISA (£9,000/year from birth) might grow at different assumed rates of return over 18 years.

Growth Rate	Total Contributions	Estimated Value at 18	Growth Earned
Cash JISA at 3.5%	£162,000	£230,500	£68,500
Cash JISA at 4.5%	£162,000	£254,000	£92,000
S&S JISA at 5%	£162,000	£271,500	£109,500
S&S JISA at 7%	£162,000	£338,000	£176,000
S&S JISA at 9%	£162,000	£426,000	£264,000

Smaller contributions still compound powerfully: Saving £100/month (£1,200/year) from birth at 7% growth gives approximately £43,000 at age 18. Saving £50/month gives around £21,500. Even modest regular contributions can create a meaningful financial foundation for a child's adult life.

Junior ISA vs Child Trust Fund

Child Trust Funds (CTFs) were government-backed savings accounts opened for children born between 1 September 2002 and 2 January 2011. The government made a starter payment into each CTF of £250 (or £500 for lower-income families). CTFs and JISAs cannot be held simultaneously — a child can only have one or the other.

If your child has a Child Trust Fund, you can transfer it to a JISA at any time. This is usually worth doing if a JISA from a different provider offers better interest rates or lower investment fees. The transfer does not count against the annual JISA allowance. Once transferred to a JISA, the CTF is permanently closed and cannot be re-opened.

To find a lost or forgotten CTF, you can use the HMRC online tool at GOV.UK by searching “Find a Child Trust Fund.”

Transferring a Junior ISA

You can transfer a Junior ISA to a different provider once per year. You can also transfer between a Cash JISA and a Stocks and Shares JISA. To transfer:

Open a new JISA with the provider you want to transfer to
Request the transfer through the new provider (not the old one) using their official transfer process
The transfer must be completed within 15 business days for Cash JISAs or 30 business days for Stocks and Shares JISAs
You cannot withdraw the money yourself and redeposit it — this must be a formal ISA transfer

Transfers count towards the annual allowance only if you are making new contributions at the same time; a pure transfer of an existing balance between providers does not use up any allowance.

What Happens at Age 18?

When a child reaches 18, their Junior ISA automatically converts into a standard adult ISA. The money remains in the ISA wrapper and continues to grow tax-free. The new adult is free to:

Withdraw all or part of the money immediately
Continue adding to the account (up to the adult ISA allowance of £20,000/year)
Transfer to a different provider or ISA type
Keep the account with the existing provider and do nothing

The conversion is automatic — you do not need to take any action. The account simply upgrades from a JISA to a regular ISA on the child's 18th birthday. No tax is charged on withdrawal, regardless of the size of the fund.

Frequently Asked Questions

What is the Junior ISA allowance for 2025–26?

The Junior ISA annual subscription limit for 2025–26 is £9,000 per child. This covers contributions from all sources combined — parents, grandparents, and anyone else. The allowance applies across all Junior ISAs the child holds (Cash and Stocks & Shares combined). The annual allowance resets each tax year on 6 April.

Who can open a Junior ISA?

Only a parent or guardian with parental responsibility can open a Junior ISA. The account is in the child's name. The child must be under 18, live in the UK, and must not already have a Child Trust Fund. Anyone — grandparents, friends, other family — can contribute to an existing JISA, but only parents or guardians can open one.

Can grandparents contribute to a Junior ISA?

Yes. Once the account is open, anyone can pay into it. Grandparents can transfer money directly into the account. However, the total from all contributors must not exceed the £9,000 annual allowance. Grandparents cannot open a JISA themselves — that right is reserved for parents or guardians with parental responsibility.

What happens to a Junior ISA when the child turns 18?

At age 18, the Junior ISA automatically converts to a standard adult ISA. The child (now an adult) can withdraw money at any time with no tax to pay, continue saving under the £20,000 adult ISA allowance, or transfer to a different ISA provider. No action is required to trigger the conversion — it happens automatically on their 18th birthday.

Cash JISA or Stocks and Shares JISA — which is better?

For young children with 10+ years until they turn 18, Stocks and Shares JISAs have historically produced much better returns than cash savings. UK and global equity markets have returned an average of 7–9% per year over long periods, significantly outperforming bank interest rates. However, investment values can fall and past performance does not guarantee future results. Cash JISAs offer certainty of capital and are better suited to children closer to 18 where market risk is less acceptable. Many families use both types.

Can a child have both a Cash JISA and a Stocks and Shares JISA?

Yes. A child can hold one Cash Junior ISA and one Stocks and Shares Junior ISA simultaneously, and you can split the £9,000 annual allowance between them however you wish. You can hold them with different providers. You cannot hold two Cash JISAs or two Stocks and Shares JISAs — only one of each type. You can transfer between types once per year if you want to switch strategy.

How much could a Junior ISA be worth at 18?

At £100/month (£1,200/year) with 7% annual growth, a JISA opened at birth is worth approximately £43,000 at age 18. At the maximum £9,000/year with 7% growth, the value at 18 could exceed £338,000. Even £50/month grows to around £21,500. These are illustrative figures — actual Stocks and Shares returns vary and can be negative in any given year.

Related Calculators and Guides

Lifetime ISA Calculator — Compare JISA grown money vs a Lifetime ISA for the child at 18
Savings Calculator — General savings growth calculator
Compound Interest Calculator — See the power of compounding in detail
ISA Calculator — Adult ISA growth projections
Junior ISA Calculator — Quick JISA projection tool

Mustafa Bilgic (MB)

Financial content writer and calculator specialist at UK Calculator. All tools use official HMRC and government data. Learn more about our team.

Junior ISA Allowance 2025–26