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Saving with Junior ISAs becomes easier

Updated 22 December 2022

2min read

Nick Green
Financial Journalist

Every parent wants to give their children the best start in life. Encouraging them to save for their future is one wonderful way to do just that.


University, buying a car or a first home: these may all seem like eons away when your kiddiewinks are small, but it’s important to start saving for these things as early as possible.

Soon, it will be easier for parents to move Child Trust Funds (CTF) into Junior ISAs in order to chase better returns. Because CTFs are now being phased out, this is a welcome introduction for parents and their tiny rugrats.

Junior ISAs are tax-free savings accounts, which six million under-18s can save or invest up to £3,720 in per tax year. They then remain tax-free until they’re 18, and often beyond. The idea is to encourage them to build up a nest egg, which will help in adult life.

“£100 per month saved into a Junior ISA for 18 years could grow to over £38,000”

One hundred pounds a month saved into a Junior ISA for 18 years could grow to more than £38,000 assuming a 6 per cent annual investment return. That could be the crucial difference to help hoist a young adult onto the first rung of the property ladder.

The government has recommended the current rules be relaxed so parents can access the £4.9 billion currently held in CTFs. As with adult ISAs, the new account provider would request the cash from the existing account.

The government says it wants to support parents by ensuring there are clear and simple ways to save for all children. Economic secretary to the Treasury Sajid Javid says: “We introduced Junior ISAs in 2011 to support parents saving for children. In the interests of fairness, we want to give the 6.3 million children who have a Child Trust Fund the option to open one too.”

>>>Find out more about saving for your children

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About the author
Nick Green is a financial journalist writing for Unbiased.co.uk, the site that has helped over 10 million people find financial, business and legal advice. Nick has been writing professionally on money and business topics for over 15 years, and has previously written for leading accountancy firms PKF and BDO.