£9,000/yr allowance — grows tax-free until 18 · Vanguard · HL · AJ Bell · Moneybox · Nationwide compared
A Junior ISA (JISA) lets you invest or save up to £9,000 per year for a child, completely free of income tax and capital gains tax. The money is locked until the child turns 18 — which is also what makes it powerful: even modest monthly contributions, invested over 18 years, can build a significant tax-free pot.
| Feature | Detail |
|---|---|
| Annual allowance | £9,000 per child per tax year (2026/27) |
| Who can open | Parent or legal guardian only |
| Who can contribute | Anyone — parents, grandparents, relatives, friends |
| Access | Locked until age 18 (terminal illness exception) |
| At 18 | Converts to adult ISA — child gains full control |
| Tax treatment | All growth and income tax-free |
| Types | Cash JISA or Stocks & Shares JISA (or both) |
| Feature | Cash JISA | Stocks & Shares JISA |
|---|---|---|
| Historical returns | ~4–5% (current rates) | ~7–8%/yr long-term (no guarantee) |
| Risk | None — capital protected | Value can fall as well as rise |
| Best for | Short remaining time horizon (under 5 years) | Long time horizon (5+ years, ideally 10+) |
| Complexity | Simple — just save | Need to choose funds |
| 18-year recommendation | Only if very risk-averse | Strong case given 18-year horizon |
Vanguard's JISA is the default recommendation for most families. The 0.15% platform fee (capped at £375/yr) is among the lowest available, and LifeStrategy funds give instant global diversification with a single investment decision. The 100% Equity LifeStrategy fund is particularly appropriate given an 18-year time horizon. Contributions from £25/month make it accessible.
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AJ Bell's JISA gives access to a much broader fund and ETF universe than Vanguard — including Vanguard's own funds, iShares ETFs, and investment trusts. At 0.25% platform fee, it's slightly more expensive than Vanguard but far cheaper than HL. Good choice if you want to switch between funds as markets evolve over the 18-year term.
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HL's JISA offers the widest fund choice and the best customer service of any major JISA provider. However, note that the 0.45% platform fee has no cap on JISAs (unlike the £45/yr cap on adult ISA shares). On a £50,000 JISA pot, that's £225/yr in platform fees vs Vanguard's £75/yr. The extra choice may not justify the cost for most families.
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Moneybox's JISA is ideal for parents who want a simple, app-led approach and the round-up feature that automatically saves spare change. The platform simplifies fund selection and makes contributing habitual. However, the 0.45% + £1/mo fee structure is more expensive than Vanguard at the same pot size.
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Nationwide's Cash JISA is appropriate for families who prefer capital protection or whose child is approaching 18 (reducing equity risk). Competitive rates among high-street bank Cash JISAs, with branch access for deposits. A good option for the final 2–5 years before the child turns 18, when switching from equities to cash reduces volatility risk.
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| Provider | £10,000 pot | £30,000 pot | £60,000 pot |
|---|---|---|---|
| Vanguard | £15/yr | £45/yr | £90/yr |
| AJ Bell | £25/yr | £75/yr | £150/yr |
| Hargreaves Lansdown | £45/yr | £135/yr | £270/yr |
| Moneybox | £57/yr* | £147/yr* | £282/yr* |
*Moneybox includes £12/yr subscription (£1/mo). Underlying fund OCF (typically 0.2–0.22%) applies to all providers in addition to platform fee.
Vanguard. Lowest cost, LifeStrategy 100% Equity, no decisions needed. Set up a monthly direct debit and leave it.
AJ Bell. Access to Vanguard funds, iShares ETFs and investment trusts at a reasonable 0.25% fee.
Nationwide Cash JISA. Transfer from S&S JISA to Cash JISA 2–5 years before the child turns 18 to protect the pot from a market crash.
Moneybox. Round-up feature saves automatically. Accept higher fees for the habit-forming convenience.
The Junior ISA allowance is £9,000 per tax year for 2026/27. Anyone can contribute up to this limit across all JISAs the child holds. The money cannot be accessed until the child turns 18, at which point it converts to an adult ISA.
For money that won't be needed until age 18, a Stocks and Shares JISA is almost always better over an 18-year time horizon. Historically, global stock markets have returned approximately 7–8%/yr before inflation over long periods. £200/month from birth at 7%/yr grows to approximately £78,000 by age 18 vs ~£64,000 in a 4% Cash JISA.
Yes — anyone can contribute to a child's JISA, up to the £9,000 annual limit. Contributions from grandparents, relatives or friends all count toward the same £9,000 cap. The account must be opened by the parent or legal guardian, but once open, anyone can pay by bank transfer.
On the child's 18th birthday, the JISA automatically converts to an adult ISA. The child gains full control and can withdraw, transfer or continue investing. No tax is due on the conversion. The full balance remains tax-free.