Junior ISAs for a New Baby: How They Work and What the 2026 to 2027 Limit Is (UK)

Family and friends often ask what would make a lasting gift for a new baby, and parents often wonder about putting something aside for the child. A Junior ISA is one of the savings options GOV.UK describes. This guide summarises what GOV.UK says about how Junior ISAs work in the UK. It is general information, not financial advice: providers, interest rates, investment charges and risks differ, and GOV.UK directs people to contact providers directly.

What a Junior ISA is

GOV.UK describes Junior Individual Savings Accounts as long-term, tax-free savings accounts for children. A child qualifies if they are under 18 and living in the UK. GOV.UK says the savings limit for Junior ISAs in the 2026 to 2027 tax year is £9,000 (GOV.UK, “Junior Individual Savings Accounts (ISA)”). The tax year runs from 6 April 2026 to 5 April 2027.

The two types

There are two types of Junior ISA, and a child can have one or both:

• Cash Junior ISA: GOV.UK’s example is that no tax is paid on interest on the cash saved.
• Stocks and shares Junior ISA: the cash is invested, and GOV.UK’s example is that no tax is paid on capital growth or dividends.

A child can have only one cash Junior ISA and one stocks and shares Junior ISA (GOV.UK, “Junior ISA: Open an account”). Because the second type involves investing the cash, a parent may want to discuss its terms with a provider.

Who can open one

Only parents, or a guardian with parental responsibility, can open a Junior ISA for a child under 16. The steps are to choose the type wanted, choose a provider and get an application form from them. GOV.UK says Junior ISAs are available from a range of banks, building societies, credit unions, friendly societies and stockbrokers, and suggests contacting them directly. Children aged 16 and 17 can open their own (GOV.UK, “Junior ISA: Open an account”).

The money belongs to the child, even though the parent or guardian opens and manages the account (GOV.UK, “Junior Individual Savings Accounts (ISA)”).

Who can pay in, and how much

Anyone can pay money into a Junior ISA, so a grandparent or friend can contribute as well as the parents. The total paid in across the child’s accounts cannot go over £9,000 in the 2026 to 2027 tax year. GOV.UK gives an example: if £2,000 is paid into a cash Junior ISA between 6 April 2026 and 5 April 2027, only £7,000 could be paid into a stocks and shares Junior ISA in the same tax year. Money can be transferred between a child’s Junior ISAs, but not between a Junior ISA and an adult ISA (GOV.UK, “Junior ISA: Add money to an account”).

Who manages it, and what changes at 16 and 18

The account is in the child’s name, but the person with parental responsibility who opens it is the “registered contact” and is responsible for managing it. GOV.UK says the registered contact is the only person who can change the account, for example from cash to stocks and shares, change the provider, or report changes of circumstances such as a new address. A child aged 16 or over can become the registered contact.

The child can take control of the account at 16, but the money cannot be withdrawn until they turn 18, though GOV.UK notes there are exceptions. When the child turns 18, the Junior ISA automatically becomes an adult ISA, and they can take out any money in it (GOV.UK, “Junior ISA: Manage an account”).

What about a Child Trust Fund?

A Child Trust Fund is a similar account but was for children born between 1 September 2002 and 2 January 2011. GOV.UK says the scheme closed in 2011 and that a Junior ISA can be applied for instead. A child cannot have both a Child Trust Fund and a Junior ISA, and if a Junior ISA is opened for a child with a trust fund, the provider can be asked to transfer the trust fund into it (GOV.UK, “Child Trust Fund”). For a baby born now, the Child Trust Fund is not an option.

A short checklist before opening one

• Documents first: see our guide to registering a baby’s birth.
• Check the money that already comes in: our guide to claiming Child Benefit explains the weekly payment, which is separate from any savings account.
• Compare providers: GOV.UK lists banks, building societies, credit unions, friendly societies and stockbrokers as sources, and each sets its own terms.
• Decide the type: cash, stocks and shares, or both.
• Agree the contributions: the £9,000 limit covers everyone who pays in.

Questions readers often ask

Can a grandparent open a Junior ISA?

GOV.UK says only parents, or a guardian with parental responsibility, can open one for a child under 16. Anyone can pay into it once it exists.

Can the money be taken out early?

GOV.UK says money in a Junior ISA cannot be taken out until the child is 18, though there are exceptions.

The bottom line

A Junior ISA is a tax-free savings account for a child under 18 living in the UK. In the 2026 to 2027 tax year, up to £9,000 in total can be paid in across a cash and a stocks and shares account, and anyone can contribute. A parent or guardian opens and manages it, the money belongs to the child, control passes to the child at 16 and withdrawals are not possible until 18, when it becomes an adult ISA. Details, charges and risks vary by provider.

Sources

• GOV.UK, “Junior Individual Savings Accounts (ISA)”
• GOV.UK, “Junior ISA: Open an account”
• GOV.UK, “Junior ISA: Add money to an account”
• GOV.UK, “Junior ISA: Manage an account”
• GOV.UK, “Child Trust Fund”