Top junior cash ISAs
3.85% tax-free kids' savings
Junior cash ISAs (JISAs) let you save up to £9,000 in the 2026/27 tax year, with the cash locked away until the child turns 18. This guide has the pros and cons of junior ISAs, how to transfer in from a Child Trust Fund, plus the top paying accounts.
Martin Lewis: An important note about junior ISAs
If you’re locking money away in a Junior ISA until your child is 18, I’d strongly urge you to consider investing rather than saving (or, if nervous, at least invest some of it). The reason comes down to the two big 'when to invest' rules...
It should be money you don’t need to use for now. If you’re putting money in a Junior ISA, and your child isn’t almost 18 already, they can’t need it – or you wouldn’t be locking it away.
It should be money set aside long term (say, 5+ years). JISAs lock money away until they’re 18, so for most who start when their child’s young, that’s long term.
So JISAs can hit the sweet spot for when to invest.
Watch: Martin explains why to consider investing, not saving
As Martin mentioned above, a JISA by nature often hit the sweet spot for when to invest. And as, over the long term, investing will hopefully substantially out perform savings, your kids will likely have a far bigger nest egg. Martin explains this in full in his video below.
What are junior ISAs? Should I get one for my kids?
You can save for your child in an kids' savings account or within a Junior ISA (JISA) – a tax-free account wrapper which an under-18 can have up to £9,000 total paid into each tax year. Once in a JISA, the money stays tax-free year after year, so for those lucky enough to have it maxed out each year, it can end up in the £100,000s.
There are both cash (savings) JISAs – which we go through in this guide - and stocks & shares (investment) JISAs, where gains and dividend income isn't taxable. A child can have both, but the limit is £9,000 a year in total for the two.
JISAs must be opened by a parent or guardian with parental responsibility. At 16, the child can take control of it themselves.
❌ DON'T use JISAs for money your kids will need while they're kids. The money can't usually be withdrawn or touched until they're 18 (barring terminal illness and death), so it's only for money you're putting away for their long-term future.
✔️ DO use JISAs for money you want to lock away until they're adults. Once money is in a JISA, it's only accessible one they turn 18. So it's a simple way to lock money away for their future without them getting their hands on it. Yet on the day they turn 18, it's their money and is under their control. So, if you're putting it aside for them to use at university, beware they may decide to buy a Harry Styles-themed camper van instead.
✔️ DO look at JISAs if your child may pay tax, especially if their money comes from parents. This isn't that important for smaller amounts, as most children don't pay tax. Not because they don't need to, children are mostly taxed like adults, meaning they can usually earn £12,570 from any source tax-free. It's just most don't earn enough.
Money given by parents is different for under-18s
If a child earns £100+ a year, in interest or dividends, from money given to them by a specific parent or step-parent (not grandparents, aunties, uncles or others) it's all taxable as if it were the parent's income.
This is to stop parents stashing their own cash in their child's name. So if the parent has used up their Personal Savings Allowance or dividend allowance and pays tax on income, their child will too. That's when JISAs really count, as money given by parents isn't taxable.
We cover taxes on investment in more detail in our Investing for beginners guide.
- In a split family? Don't both parents open one, that can cause problems.
- Grandparent? See our how to save for your grandchildren guide.
Martin: Using a JISA, most should be going for shares not cash...
A shares JISA is a tax-free investment account that allows parents to buy and sell different types of investments – such as funds, shares and bonds – on behalf of their child, where gains and dividend income are protected from tax – more on this in our investment JISAs guide. If you're feeling a bit lost, read our Investing for beginners guide first for more on different types of investments.
Investing means your money is put in assets such as shares, corporate bonds and more, in the hope that you get far higher growth, but at the risk you could end up with less than you put in.
Yet if you aim for a wide spread of investments (more on how to easily do that), as most beginners should, that helps mitigate the risk.
Do that and, on the big balance of probabilities, over the long term investing will hopefully substantially outperform savings – in which case your kids will have a far bigger nest egg.
Top junior cash ISAs
Below, we've listed the highest-paying junior cash ISAs open to all. However, it's always worth checking your local bank or building society, as it may have a good branch-only offer for local customers – as a nationwide website, we can't cover all of these.
Junior cash ISAs – what we'd go for
The top rates can’t be opened online or via app. Leek Building Society pays the top rate at 3.85%, though it can only be opened and managed by post or in branch. You can transfer in from existing JISAs and Child Trust Funds.
The top online account pays less. Government-backed NS&I pays a decent 3.7% and can be opened and managed online.
Provider | Rate (AER variable) | How to open | Transfer in allowed? | Interest | Max FSCS protection |
|---|---|---|---|---|---|
Top-paying accounts | |||||
3.85% on £1+ | Post/ branch | Yes | Annually | £120,000 | |
3.8% on £1+ | Post/ branch | Yes | Annually | £120,000 | |
3.76% on £1,000+ | Post/ branch | Yes | Annually | £120,000 | |
3.75% on £1+ | Post/ branch | Yes | Annually | £120,000 | |
Top online/app accounts. Lower rate but can be opened & managed digitally. | |||||
3.7% on £1+ | Online | Yes | Annually | 100% of deposit backed by HM Treasury | |
3.56% on £1+ | App | Yes | Monthly | ||
Junior cash ISA FAQs
How do I pay into a junior ISA?
You can usually deposit money into a junior ISA in the same ways you would with a normal bank account, via cash deposit in branch, cheque, a one-off bank transfer or a regular payment such as a standing order.
You can deposit a lump sum or top up your child's ISA as frequently as you like, though you can't pay in more than the £9,000 allowance per tax year.
You can also transfer an existing junior ISA to a new provider. Some (but not all) providers also allow you to transfer existing Child Trust Funds.
Can you have a Child Trust Fund and a junior ISA?
No, a child can't have both a Child Trust Fund and a JISA open at the same time. This is why, if your child does have a CTF, you'll have to transfer it if you want to open a Junior cash ISA or a junior investment ISA.
How do you transfer a Child Trust Fund to a junior ISA?
To do this, you just need to find a junior ISA which accepts transfers in from CTFs (most do, but there are a few which don't) and open the account. During the application process, the new provider should present details of how to transfer a CTF, and include a transfer form where you fill out the details of your child's CTF.
For full details, see our Child Trust Funds guide, or if you're unsure if your child has one, see our Reclaim your Child Trust Fund guide.
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