Junior ISA vs children’s savings account
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Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying.
FSCS protects eligible deposits up to £120,000 per person, per authorised institution.
Quick answer
A Junior ISA lets you save up to £9,000 a year (2026/27) tax-free for a child, but the money is locked until they’re 18, when it becomes theirs. A children’s savings account is more flexible, but if a parent’s gifts earn more than £100 interest a year, the parent may be taxed on it.
The £100 rule doesn’t apply to money from grandparents, other relatives or friends, or to Junior ISAs.
Side by side
| Feature | Junior ISA | Children’s savings account |
|---|---|---|
| Annual limit | £9,000 (2026/27) | Varies by account |
| Tax | Tax-free; £100 parental rule doesn’t apply | £100 parental-gift interest rule applies |
| Access | Locked until 18 | Depends on account |
| Who owns it | The child; theirs at 18 | The child |
Rules and figures from GOV.UK, as of 4 October 2026. General information, not advice.
Who it’s for
- Junior ISA: long-term saving for a child’s adulthood
- Children’s savings account: shorter-term goals, or money you may need to access
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You want control of the money after 18 — a Junior ISA belongs to the child
Full explanation
Grandparents’ gifts into a children’s savings account aren’t caught by the £100 rule, so some families use both.
The catch
A child can manage their Junior ISA from 16 but can’t withdraw until 18.
FAQs
How much can I put in a Junior ISA?
£9,000 in 2026/27.
When can my child access a Junior ISA?
They can manage it from 16 and withdraw from 18.
What is the £100 rule?
If money given by a parent earns over £100 interest in a tax year, it may be taxed as the parent’s income.
Does the £100 rule apply to grandparents?
No.
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