Saving for future generations with a ‘Junior Individual Savings Account’ (JISA)

Posted: 19th February 2021 Key

Thinking of saving for your children or grandchildren? You may be thinking about university costs, driving lessons or a deposit on their first home. A ‘Junior Individual Savings Account’ (JISA) is a long-term, tax efficient savings account for children under 18 who live in the UK.

JISAs are tax-efficient because any income earned, or capital gains made are not currently subject to UK tax. This makes JISAs the most efficient way of saving and investing for children. You also don’t have to declare any income or gains from the JISA on your tax return.

Each child in the UK gets a new JISA allowance every tax year. The main objective of a JISA is to provide as much as possible for when the child turns 18. You can open one Stocks & Shares JISA and one Cash JISA every year, but the combined contributions mustn’t be more than the annual allowance.

A JISA must be opened by a parent or guardian, but anyone can add money once it’s open. This makes them handy for saving things like Birthday and Christmas money. The money in the JISA belongs to the child, and can’t be withdrawn until they turn 18.

If you’d prefer your child to have the option to access the money in their account before they turn 18, there are alternative savings options available. Opening a Child Savings Account with your bank or building society provides more flexibility on withdrawals, and you’ll often find children’s savings accounts have much more generous interest rates than adult accounts. However, they can also come with a lot of caveats, so you need to make sure the account works for your circumstances before you commit to opening it. To find out more about saving for future generations please contact us

Important information

The above information is for educational purposes only and is not a personal recommendation or investment advice. If you’re unsure about the suitability of a particular investment, you should speak to an authorised financial adviser. As you probably know, the value of investments and the income from them can go down as well as up, so you might not get back the amount you invest.

We’ve made every effort to ensure the information above is accurate. Content is based on our understanding of current law and practice at the time of writing, which could alter as a result of future legislation. ISA limits are subject to change and the favourable tax treatment given to ISAs may not be maintained in the future. Tax treatment may depend on your individual circumstances. This article is aimed at UK residents.

Wise Investment is authorised and regulated by the Financial Conduct Authority. Our FCA number is 230553. Registered Office: The Great Barn, Chalford Park Barns, Oxford Road, Chipping Norton, Oxfordshire, OX7 5QR. Registered in England 4970458.


Jo Radcliffe