Junior ISAs were first introduced in November 2011 and provided a replacement to the short-lived Child Trust Fund.
The Junior ISA celebrates its 8-year anniversary on 1st November 2019 and based on the maximum contribution limits, had you opened an account back in November 2011, you could have saved £31,552 of tax-free cash. This, however, could have been slightly more or less based on the type of Junior ISA you opened.
What is a Junior ISA
A Junior ISA is a tax-efficient way of building a savings pot for your child. There are two types of Junior ISAs, a Junior Cash ISA or a Junior Stocks and Shares ISA. The lump-sum accrued over time can be accessed by your child at the age of 18.
Junior ISA features:
- In the 2019/20 tax year, a maximum of £4,368 per child can be invested in a Junior ISA and rises to £9,000 in 2020/21 (any unused allowance cannot be carried forward)
- A Junior ISA can only be opened by parents or legal guardians of the child
- Anybody can contribute to a Junior ISA once it is opened
- A child can have both a cash Junior ISA and a Stocks and Shares Junior ISA but the annual allowance must be spread between the two accounts
- Once your child turns 18 they can access the money or they can transfer it into an adult ISA
Best Cash Junior ISAs - Comparison Table
The below table shows the best cash Junior ISAs as of October 2019:
| Junior ISA Provider | Junior ISA AER interest rate |
| Coventry BS | 3.60% |
| Danske Bank | 3.45% |
| Santander | 3.25% |
| TSB | 3.25% |
| Darlington Building Society | 3.25% |
| NS&I | 3.25% |
| Tesco Bank | 3.15% |
| Halifax | 3.00% |
| Barclays | 3.00% |
| Family Building Society | 2.75% |
| Cumberland Building Society | 2.75% |
| Mansfield Building Society | 2.70% |
| Lloyds Bank | 2.50% |
| Wesleyan Bank | 2.25% |
Best Stocks & Shares Junior ISAs
The below table shows the best Stocks and Shares Junior ISAs as of October 2019:
| Provider | Minimum investment | Annual charge | Dealing charge |
| Wealthsimple* | No minimum investment | 0.7% (As a Money to the Masses reader, The first £10,000 of your money is managed for free) | Nil |
| Charles Stanley Direct | £500 lump sum or £50 per month | 0.35% | Nil for funds |
| AJ Bell Youinvest | £25 lump sum or per month | 0.25% | £1.50 per deal online |
| Hargreaves Lansdown* | £100 lump sum or £25 per month | 0.45% | Nil |
| Bestinvest | £100 lump sum | 0.40% | £7.50 |
| Fidelity | £1,000 lump sum or £50 per month | £25 pa flat fee for less than £7,500, or 0.35% pa | Nil |
| Interactive Investor* | £25 lump sum or per month | £120, £168 or £240 pa (charged monthly) | £7.99 per trade, reduced if selecting £168 or £240 pa options |
| Vanguard Investor | £500 lump sum or £100 per month | 0.15% (max £375 a year) | Nil |
For more information on the above tables and the best providers for Junior ISAs you may find the following articles useful:
- Best Junior stocks and shares ISA (& best Junior cash ISAs)
- Junior Stocks & Shares ISA Best Buy Table
If a link has an * beside it this means that it is an affiliated link. If you go via the link, Money to the Masses may receive a small fee which helps keep Money to the Masses free to use. The following links can be used if you do not wish to help Money to the Masses - Wealthsimple, Hargreaves Lansdown, Interactive Investor
