Savings accounts for children

All any parent wants is to be able to provide for their child, and saving up over a long period of time could be a great way to give them a brighter future. Even small, regular amounts can build up over time and could make a huge difference later on. It’s also a great way to help them learn how to save and manage money from an early age.

Below, we explain the benefits of saving for your child, how a Junior Cash ISA (JISA) works, and other ways you can put money aside for their future.

Why save for your child?

If you start saving a little money for your child when they’re young, it can really add up by the time they turn 18. This money can help them with important things as they begin adult life, so it’s a good idea to save with their future in mind. Here are some of the top reasons parents across the UK choose to save for their kids:

Education

While it's impossible to predict your child's plans for the future when they're little, there's every chance they'll need help with educational fees somewhere down the line. Whether they choose to go to university or want to undertake vocational training of some kind, having some money in the bank for their development will help ensure they don't have to miss out on any opportunities that come their way.

First property

One day, your child will want to move into their own place but buying a home can be a big step, especially when they’re just starting out. You could help them achieve this by saving towards a deposit first property. Starting early could help them get on the property ladder sooner and make the move into adult life feel easier.

Wedding

It may feel a long way off when they’re little, but your child might want to get married one day. Weddings can be expensive, so having some savings tucked away can help them plan a special day without worrying as much about money.

Car

A car is a big financial commitment, especially for a young person. Give your child a head start by saving for a car before they start their driving lessons, so they can enjoy it with little, if any, debt.

What is a Junior ISA (JISA)?

A Junior ISA is a simple, tax‑efficient way to save money for a child under 18 who lives in the UK. It’s a long‑term savings account designed to help their money grow over time. Junior ISAs are generally opened by parents, but children aged 16 can open one themselves.

Important things to know about Junior ISAs

• A child can’t have both a Junior ISA and a Child Trust Fund - only one or the other. New Child Trust Funds have now been replaced by Junior ISAs
• Once the account is opened, savings stay in the account until the child turns 18, so the money has time to grow

Key benefits of Junior ISAs

• Tax‑free savings – with a Junior ISA, your child’s savings grow tax‑free, which might help their money go further
• Easy long‑term saving - the money is held in the account until the child turns 18, it can help to encourage regular saving throughout childhood. It can also help parents to teach children about the importance of saving and managing your money 
• Family and friends can help - anyone can pay money into the account including parents, grandparents, and other relatives
• Annual allowance - you can save up to £9000 in a Junior ISA in the current tax year
• More independence when your child turns 16 - as they can manage their own Junior ISA and open an ordinary Cash ISA too

At 18, they get full access to the money and can decide how to use it. At that point, parents might choose to help guide their choices so they can spend their savings wisely.

The current rules for ISAs are subject to change by HMRC and the value of tax benefits will depend on individual circumstances.