If you would like to make sure that your child has a substantial nest egg available to them when they become an adult, investing in a child ISA may the most attractive option.


This kind of savings account allows you to invest £4,000 every tax year in your child’s future, an amount that is likely to grow as the result of a good interest rate. The great attractiveness of these accounts comes from the fact that these savings is tax efficient.


There are two basic kinds of child ISA that are available:

A Cash ISA  - Money is held in cash and attracts interest. The money is safe but is at the mercy of inflation over time. On the other hand a Stocks and Shares ISA will provide the potential of inflation beating returns over time but capital will be at risk.


See below for a FREE Junior ISA pack for investing in a Stocks and Shares ISA for a child:

Junior ISA Selection
ProviderJunior ISA ProviderRegular SavingsInvestment OptionsOnline ValuationsMore Info
Scottish Friendly My Select Junior ISAyesA range of assets including UK and global shares, bonds and cashyesMore Info >
  • Invest up to £4080 pa per child
  • Invest from only £10 a month, or a lump sum from just £50, or a mixture of both
  • Raise, lower, or stop and restart your payments any time you like
  • Available for children under 16, who didn't qualify for a Child Trust Fund
  • Available for Junior cash ISA holders
  • The value of investments and any income can fall, so the Junior ISA could return less than you invest
  • Returns on investment funds are not guaranteed
One Family Junior ISAyesApply online and set up a direct debit of £20 or more and receive a £30 Amazon voucher. T&C’s apply, see OneFamily website. The OneFamily Junior ISA helps you to invest for your child’s future. It could help towards going to uni, driving lessons or perhaps helping to pay for a flat of their own. yesMore Info >
  • Award winning: Winner of the Moneyfacts Award for Best Junior ISA Provider (Awarded to Family Investments in 2014. OneFamily was established following a merger between Family Investments and Engage Mutual)
  • You choose how much you want to pay in, and when. From £10 to £340 a month up to £4,080 in the 2015/2016 tax year.
  • Available for children under 18
  • Open your child’s Junior ISA online and set up a Direct Debit and as a thank you OneFamily will send you up to £30 in vouchers (terms and conditions apply – please see OneFamily website).
  • Annual management charge 1.5% deducted directly from the fund's income.
  • Because it invests in stocks and shares, the Junior ISA's value can fall as well as rise, so your child could get back less than has been paid in.
Junior Stocks and Shares ISAyesFREE Children's ISA Guide. Choose from over 2,500 unit trusts and OEICs from leading fund managers. Invest from £25 per month or lump sums of £100.yesMore Info >
  • Same tax benefits as an adult ISA - no capital gains tax, and no further tax to pay on income.
  • Anyone can contribute - useful for birthday and Christmas gifts.
  • Withdrawals possible from age 18.
  • Open with a lump sum from £100 to £4,080 or start a monthly direct debit from just £25 per month.
  • Free mobile app to deal shares, access prices, indices, news and research.
  • The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. 
  •  If you’re unsure about the suitability, we recommend you ask for independent advice.
  • Tax rules can change and the reliefs depend on your child's personal circumstances. 
Charles Stanley Stocks & Shares Junior ISAyesCharles Stanley Direct offers a Stocks and Shares Junior ISA with no initial charges or additional annual fees. Choose from a range of investments including shares, funds, gilts, bonds, investment trusts and ETFs.yesMore Info >
  • Save tax – shelter up to £4,080 per annum and pay no further on capital gains or on income from your investments.
  • Invest from £50 a month, or a lump sum from £500, or a mixture of both
  • Flexibility – choose from a wide range of investments to create a portfolio that suits you.
  • Transfer in Child Trust Funds or existing Junior ISAs
  • Automatic conversion to full ISA at age 18.
  • The value of investments and any income can fall, so the Junior ISA could return less than you invest
  • Returns on investment funds are not guaranteed

It is important to state here that if you invest in a child ISA it is possible to switch to another account. However, you cannot have more than one child ISA open at any time so it is vital that conduct any transfer properly through the new provider rather than simply opening up a new account. 

You are also not tied to the particular kind of junior ISA deal (cash or share) that you originally decide on, as you shift between the two as often as you like. The only real impediment on your action as parents are the fact that:

  • Legally the money is the property of the child, although you control it until they are 16
  • Even though they cannot withdraw any funds from the account until they are 18, the ISA passes into the child’s control when they turn 16
  • When the child reaches 18 they are in full control of the account


Investing in a junior ISA deal can be a great way of saving for your loved ones.

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested.

Investments in Stocks & Shares ISAs do not contain the same degree of capital security as investments in deposits. Stocks and shares ISAs are designed as medium to long term investments of, for example, five years or more. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.