Opening a JISA Account in 2025: 5 Must-Know Factors to Consider

A Junior Individual Savings Account (JISA) is a tax-free way to save or invest for children in the UK. Opening and contributing money to a JISA is an excellent way to prepare for your child's financial future.

However, there are five must-know factors to consider when opening a JISA account on behalf of your child in 2025.

1. There are two types of JISAs

There are two types of Junior ISAs that you can open on behalf of your child. You can choose to open one of each type: 

Junior Cash ISA. A Junior Cash ISA is similar to a child's savings account with a bank or building society, where you make monetary contributions and don't have to pay income tax or capital gains tax on any interest you may earn.

Junior Stocks and Shares ISA. A Junior Stocks and Shares ISA is a little different, as your contributions are invested instead. Still, you won't pay any capital gains or income tax on any profits you receive from these investments.

2. The money belongs to the child 

Parents or legal guardians are responsible for opening a JISA and managing the account until the child turns 18. However, the money in the account(s) will always belong to the child. 

The named child can choose to take control of managing the account when they're 16 if the provider facilitates this. But, either way, they cannot withdraw the money until they reach the age of 18. As the money belongs to the child, it's not guaranteed that they will spend it on what you intended to save for. However, using a JISA could open the opportunity to instil good financial habits and open conversations about money before then.

3. The money is locked in 

The child can not withdraw the money in a JISA until they turn 18, except in very rare circumstances. This can be seen as both an advantage and a disadvantage.

The value should grow larger because no one can access it, and your child is more likely to spend the money wisely when they become a legal adult. However, if you or your child has a financial emergency, the money is locked in the account until they turn 18.

4. There is an annual tax-free allowance

You are entitled to save or invest up to £9,000 each tax year (from 6th April to the following 5th April) on behalf of your child without them paying tax. This annual allowance will remain the same until at least 2030, but it can be subject to change in future tax years. 

The annual allowance is per child, not per family or account type. So, if you have more than one child, you are allowed to save up to £9,000 each tax year for each child. In addition, it also means that if one child has one of each type of JISA in their name, the £9,000 annual allowance must be split between the two accounts. 

For example, you could choose to deposit £4,500 into a Junior Cash ISA and £4,500 into a Junior Stocks and Shares ISA, or you could decide to put 20% of the annual allowance in a Cash JISA and 80% in a Stocks and Shares JISA.

In addition, the money you deposit into a Junior ISA will not affect your own ISA allowance.

Most ISA providers will stop you from going over the annual allowance, but if you have ISAs with multiple providers, then this is an easy mistake to make. If you do go over the limit, you should contact HMRC.

5. You cannot have a JISA and a Child Trust Fund

There are still many Child Trust Funds (CTFs) in circulation, as they were automatically opened for anyone born between the 1st of September 2002 and the 2nd of January 2011. 

However, the CTF scheme has now been replaced by Junior ISAs. So, if your child still has a CTF open, they won’t be able to have a JISA open at the same time. If your child has a CTF, then you can still contribute to it. But if you’d prefer to use a JISA instead, you can move from a CTF to a Junior ISA. You’ll just need to transfer the full amount.

Ready To Open A JISA Account In 2025?

Opening a JISA account is an excellent way to help your child pay for their first car, first home, or higher education fees. However, there is a lot you need to consider before opening an account, as the money is locked in and will always belong to the child. Speak to your chosen JISA provider if you are unsure.