Best Junior Isas 2024

What are the best Junior cash Isas rates in 2024?

Our table outlines the best Junior cash Isas that are currently available.

What are the best Junior cash Isa rates available online?

If you don't have time to get to a branch, or there aren't any branches of the providers listed above near you, here are the best rates available to online applicants (we have excluded the Bath Building Society account from this table due the fact that it's only open to Bath residents and existing members, as detailed above):

What is a Junior Isa?

A Junior Isa is a child's version of a tax-free individual savings account (Isa), designed to encourage long-term saving for anyone under the age of 18.

Parents, grandparents and friends can put money into a Junior Isa for a child each year, up to a limit of £9,000 in 2024-25 - the same limit as 2023-24.

As with standard adult Isas, the money can be invested in cash or stocks and shares, or a mix of the two.

Until recently you could only hold one of each type at any one time - one cash Junior Isa and one investment junior Isa - with the option of switching provider as often as you like.

However, in April 2024 the rules were relaxed and you are now able to hold and pay into multiple junior Isas of the same type in the same tax year.

Who can open a Junior Isa?

Parents and legal guardians can open and manage a Junior Isa for any child under 18.

Parents living abroad can still open an account if they are a Crown servant (eg in the UK's armed forces, diplomatic service or overseas civil service).

Anyone can pay into a Junior Isa (including parents, grandparents and friends) and the accounts are widely available from banks, building societies, credit unions, and stock brokers.

How much is the Junior Isa allowance?

The Junior Isa annual contribution limit for the 2024-25 tax year is £9,000 - this is the maximum that can be paid into a Junior Isa account between 6 April 2024 and 5 April 2025.

You don't have to pay the maximum contribution - you can deposit anything under this limit. 

Until recently, children aged 16 and 17 could also open an adult cash Isa for themselves. This means that, during these years, they could benefit from having up to £9,000 deposited into their Junior Isa account, and an additional £20,000 into their adult Isa. 

However, in April 2024 the minimum age for opening an adult cash Isa rose to 18 years, closing this loophole to new applicants.

Who does Junior Isa money belong to?

The parent is responsible for managing the Junior Isa, although the child can take control of the account when they're 16.

No withdrawals are allowed until they turn 18.

You can't legally stop your child from spending the money in any way they choose - so bear this in mind when deciding whether to use a Junior Isa, or to save under your own name.

When will my child get access to the money?

Money placed into a Junior Isa will not be able to be accessed until the child turns 18.

After this point, the Junior Isa will be turned into a full adult Isa, and therefore the adult Isa limit of £20,000 will apply.

How many Junior Isa accounts can I open?

You're only allowed to have one Junior Isa and one Junior investment Isa.

You can still take advantage and move the money elsewhere if you see a better rate, but the transfer process works differently than with adult Isas.

So, say you've saved £6,000 over the past three years into a Junior cash Isa. You've found another account that pays a better rate of interest and want to put this year's Junior Isa allowance into it.

To do this, you'll have to transfer the whole £6,000 you've saved from previous years into the new account you've opened, and then deposit the current year's payments into it.

Should I open a Junior Isa for my child?

Like adults, children have their own tax-free income and allowances.

During 2024-25 both adults and children will only pay tax on their savings interest if their income exceeds £18,570 - made up of the £12,570 personal allowance, £5,000 starting rate for savings and the £1,000 personal savings allowance.

See our guide to tax on children's savings for further details.

Realistically, most children will never exceed this, so it makes sense to prioritise the best rates, and these may well be found in non-Isa accounts.

That said, there are some important benefits to saving in a Junior Isa:

• The money is locked away until the child turns 18 - although they are free to withdraw and spend the cash on anything they like once they turn 18.
• Junior Isas pay interest and investment returns tax-free: money given by parents that generates more than £100 interest in a year is taxable outside of an Isa.
• There used to be a loophole for 16- and 17-year-olds: children can open an adult cash Isa as well as a Junior Isa at age 16, taking advantage of two allowances (but they can only open an adult stocks and shares Isa at 18). However this loophole closed in April 2024, when applicants for all new adult Isas will need to be at least 18.
• Junior Isas remain tax-free forever: at 18, the account automatically turns into a normal adult Isa.

What about child trust fund (CTFs)?

CTFs were abolished for children born after 2 January 2011 and replaced by Junior Isas.

In the past, the government gave children between £250-£500 to open a child trust fund (CTF). The money could remain as cash savings or be invested in the stock market or shares.

The government automatically opened CTFs for anyone born between 1 September 2002 and 2 January 2011, with parents receiving the opening funds in the form of vouchers.

Once the fund was opened, parents or grandparents could make additional contributions - in 2023-24, that's up to £9,000 a year. It was the same in 2022-23. 

When the child turns 16 they have the opportunity to manage the funds themselves, but they can't withdraw any money until they turn 18.

Child trust funds will all mature over the next few years, once the children who have them have turned 18.

If your child is terminally ill before they turn 18, they can take money out of their child trust fund account early. If they die, the money will pass to whoever inherits the rest of their property and possessions.

You can't have a CTF and a Junior Isa at the same time. But, since April 2015, you can transfer CTF savings to a Junior Isa by submitting a transfer form to your new provider. The switch takes up to 30 days.

If you or your child hold a CTF, it's worth considering a switch to a Junior Isa, as interest rates on cash savings are typically higher on Junior Isas, while investment fees are lower, with a far wider choice of investments.

How do I find out if I have a child trust fund?

If you think you have a child trust fund - or you're not sure and want to check -  HMRC has a dedicated service to find out where a child trust funds is held.

You'll be asked a few personal details in order for them to track it down, and you'll also have to set up a Government Gateway account first.

Once you know where the account is held, you'll be able to contact the provider and - if you're over 16 - gain control of your account.

It's estimated that more than one million child trust funds are 'lost' to their owners. In almost all cases of having a 'lost' account, it's because it was opened by HMRC - either because the child's parents or guardians failed to do it, or when families were receiving child tax credit.

It's highly likely that these children still have no idea these accounts exist, which is unfortunate given they're likely to come from low-income backgrounds and could arguably benefit from the money the most.

Child trust funds for children in care

Some children who grew up in care, and were born between the eligible dates, had child trust funds set up for them. The Share Foundation acts as the registered contact for these accounts.

Around two months before these children are due to turn 16, The Share Foundation will write to them to let them know how they can take over as the registered contact for their account.

The individuals can decide whether they want to manage the account themselves, or leave it in the care of The Share Foundation until they turn 18 and can withdraw the money.

You can find out more about how to take over management of an account in these circumstances on the government website.

What are the alternative ways to save for children?

If you've used up your child's tax-free options or you want to access the money before they turn 18, banks and building societies also offer non-Isa savings accounts for children.

Children can open most of these accounts themselves from age seven, so it's a great way to get them involved.

Watch out for catches such as introductory bonuses, limits on withdrawals, maximum or minimum account balances, and investment charges (if you opt for a stocks and shares Junior Isa).

Providers often offer free gifts such as a piggy bank but don't be distracted - focus on getting the best return - and check on the progress at least twice a year.

If cash savings are no longer competitive, transfer them to a better account. If stock market investments are underperforming, consider moving.

You could also consider investing in things like premium bonds, traditional investments, or even saving for your child in a pension.

Our guide on how to save for your children's future shows the pros and cons of each of these options.