Some facts about Junior Stocks and Shares ISAs

The last 12 months have taken parenting to new, heroic levels of multi-tasking. Suddenly, we’ve become teachers, playmates, restaurant owners and our more binary roles of either Mummy or Daddy. So, it’s hardly a surprise that given we’re doing all of these things as well as trying to work from home, the thought about saving for our child’s future my have slipped down the priority list somewhat. 

Some facts about Junior Stocks and Shares ISAs

However, whilst it is true the pandemic will end it is also true your child will continue to grow and get older. Many of us won’t have benefitted from a lump sum when we were young adults but consider what a difference that could make to your child’s journey into adulthood. All investment and financial decisions can be daunting but in the case of a stocks and shares Junior ISA, the rewards for your child will be well worth it. 

The Children’s ISA  offers a range of Junior ISAs to make saving for children easier and more equitable for parents, grandparents or anyone who wishes to contribute. So without further ado, let’s get straight to some facts.

Just like a standard ISA, each child has a tax-free savings allowance. This allowance changes each year but for the tax year 20/21, this amount is £9,000. 


Any child under the age of 18 in the UK is eligible to open a Junior ISA. The ISA will need to be opened by a parent or legal guardian and only accessed by the child after they reach the age of 18. 


A Junior ISA is invested in the market which means the value of the investment can go up as well as down. However, based on past performance, the value of the investment should perform at 5% per annum. Please bear in mind though that past performance is not indicative of the future value of the investment — please speak to a qualified and regulated financial adviser before making any investment decisions. 

What are the savings goals for your child? When thinking about an investment like a Junior ISA we think it’s important to define your goals first. By understanding this you will be able to understand what level of investment to make and for how long for. For instance, if the goal is to reach a substantial lump sum to pay for university education, you could also encourage grandparents, godparents and aunties and uncles to contribute if they were able to. 

It’s also worth considering diversifying investments and, this is really quite a simple thing to do. Spreading your risk and having a blended portfolio of investments means your child’s nest egg will be better protected. 

Some facts about Junior Stocks and Shares ISAs

Please note the information above is not advice, it is provided solely to enable you to make your own investment decisions. The investments and /or investment services referred to may not be suitable for all investors.


Some facts about Junior Stocks and Shares ISAs is a feature post 


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