A Junior ISA (JISA) is a tax-free savings and investment account for children under 18. The 2026/27 allowance is £9,000 per child — contributions grow tax-free and can only be accessed when the child turns 18.
Junior ISA Allowance 2026/27
| Allowance | Amount |
|---|---|
| Annual Junior ISA allowance | £9,000 |
| Can be split between Cash JISA and S&S JISA | Yes (combined max £9,000) |
| Maximum across multiple JISAs of the same type | 1 Cash JISA + 1 S&S JISA only |
| Adult ISA allowance (for comparison) | £20,000 |
Cash JISA vs Stocks & Shares JISA — Which Is Better?
| Cash JISA | Stocks & Shares JISA | |
|---|---|---|
| Return type | Fixed/variable interest | Investment growth + dividends |
| Typical return | 3–5% AER (2026) | 7–9% long-term average |
| Risk | None | Medium — can fall in value |
| Best for | Under 5-year horizon; risk-averse families | 5+ years; maximising long-term growth |
| FSCS protection | Yes (£85,000) | Investment losses not covered |
For a child with 10+ years until 18: A Stocks & Shares JISA invested in a global index fund has historically generated far better returns than cash. A £100/month investment from birth would reach approximately £32,000 in a Cash JISA (at 4%) vs approximately £50,000 in a S&S JISA (at 7%) by age 18.
Best Stocks & Shares Junior ISA Providers 2026
| Provider | Annual platform fee | Min. investment | Fund range | Best for |
|---|---|---|---|---|
| Vanguard | 0.15% (max £375/yr) | £1/month | Vanguard funds only | Lowest cost; index-fund purists |
| AJ Bell | 0.25% | £25/month | Wide range | Good fund range; competitive cost |
| Hargreaves Lansdown | 0.45% (max £45/yr on JISAs) | No minimum | Very wide | Best platform; higher cost |
| OneFamily | 1.5% (incl. fund) | £10/month | OneFamily funds | Easy to use; family-focused; expensive |
| Fidelity | 0.35% (max £45/yr) | £25/month | Very wide | Good balance of cost and range |
| Nutmeg | 0.25%–0.75% | £100 | ETF portfolios | Robo-managed; hands-off |
Best Cash Junior ISA Providers 2026
| Provider | AER | Min. opening | Access |
|---|---|---|---|
| Coventry Building Society | 4.95% | £1 | Parent-managed online |
| Nationwide | 4.00% | £1 | Branch or online |
| Santander | 4.50% | £1 | Online |
| Bath Building Society | 4.60% | £1 | Online |
Rates change frequently. Check current rates before opening.
Worked Example — £100/Month from Age 5 to 18
| Return assumption | Total contributions | Value at 18 |
|---|---|---|
| Cash JISA at 4% | £15,600 | ~£23,000 |
| S&S JISA at 6% | £15,600 | ~£27,000 |
| S&S JISA at 8% | £15,600 | ~£31,500 |
Illustrative only. Stock market returns are not guaranteed.
How to Transfer a Junior ISA
You can transfer a JISA to a different provider at any time — there is no tax penalty. Transfers from Cash JISA to S&S JISA (and vice versa) are allowed. The transfer must be done directly between providers (do not withdraw and redeposit — that loses the tax-free status).
To transfer:
- Open a new JISA with the new provider
- Complete the provider’s transfer form
- The new provider handles the transfer — takes 15–30 working days
Common Mistakes to Avoid
- Double-contributing: Only one parent/guardian manages the JISA but multiple family members may not realise the £9,000 limit applies to all contributions combined
- Opening two JISAs of the same type: You can only hold one Cash JISA and one Stocks & Shares JISA at a time
- Choosing cash for a long time horizon: A child born today has 18 years of compounding — cash significantly underperforms equities over that period
For related saving topics see ISA allowance 2026/27, best cash ISA rates, and how much savings by age UK.