Start saving for your children - tax-free
A Junior Cash ISA is a simple, affordable way to save for your child’s future if they don’t have a Child Trust Fund. The money in the ISA belongs to the child, who can withdraw it when they reach 18.
- Earn 4.00% Gross/AER (variable) interest. Our interest rates
- Open your account with just £1, then save up to £9000 in the 2023/24 tax year - this is the combined total you can contribute to a Junior Cash ISA and a Junior Stocks and Shares ISA.
- Manage the account with online and telephone banking
- The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
How our Junior Cash ISA works
Who can open an account?
Anyone with parental responsibility for a child can open a Junior ISA. So if you're a parent or guardian of an eligible child, you can open a Junior Cash ISA for them.
When applying for the account you will need to provide details for a bank account in your own name to be the linked account.
Other people can save into your child's account as well - grandparents, relatives and friends - so long as the total savings in the Junior ISAs don't exceed the limit of £9,000 in this tax year.
A young person aged 16 or over can open an account themselves but they need to call us to apply. They can’t do it online.
If you’ve already subscribed to a Junior Cash ISA, you can only open a Junior Cash ISA with us if you transfer all your subscriptions from the existing provider, to us. Your ISA provider may charge a fee to transfer funds.
Children with a Child Trust Fund are not eligible for a Junior Cash ISA.
Flexible tax-free savings
You can save up to £9,000 tax free in the 2023/24 tax year - this is the combined total for a Junior Cash ISA and a Junior Stocks and Shares ISA.
Contact your account provider to make regular or one off payments into your account. You’ll need your Junior Cash ISA Sort Code and Account Number to do this.
To understand more about different types of ISA and your tax-free savings allowance, take a look at the important information. Types of ISA
How it works and what you can transfer
A child can only have one Junior Cash ISA at any time, but it's possible to transfer all of the money in an existing Junior Cash ISA to another Junior Cash ISA providing the existing account is then closed.
If you want to move your money from a Junior Cash ISA with another provider to us, you can do this by using the ISA transfer process. Rest assured, we make the process quick and easy.
You can transfer:
- all, but not part, of the funds saved in an existing Junior Cash ISA to a new Junior Cash ISA
- all or part of the funds in a Junior Cash ISA saved in a previous tax year to a Junior Stocks and Shares ISA
- all of the money held in a Junior Cash ISA to a Junior Stocks and Shares ISA, then a new Junior Cash ISA can be opened
Other providers may have restrictions or charge a fee on transfers, so you should always check this with them before transferring money to or from another provider.
How to transfer to Tesco Bank
- You’ll need to apply for an account with us and can do this either online or by telephone. You can start the transfer process during the application, which will help us set up your Junior Cash ISA as quickly as possible
- If you have already applied for a Junior Cash ISA, you can still request to transfer your existing Junior ISA with another provider to us using our Junior Cash ISA Transfer Authority Form
- Once your Junior Cash ISA is open and you have an account number, you can download and complete a Junior ISA Transfer Authority Form and send it to us at the address shown on the form
- If you have any questions call us on 0345 678 5678. This number may be included as part of any inclusive call minutes provided by your phone operator
Who can access the money and when
The money in a Junior Cash ISA belongs to the child who can only withdraw it when he or she reaches age 18 - a great start to adult life. If, once they reach 18, the child doesn’t have capacity to deal with their own financial affairs, the person responsible for doing so will have to produce a Deputy Order (if in England or Wales) or a Guardianship Order (if in Scotland) to be able to access the money on the child’s behalf.
No money can be withdrawn from the account until the child reaches age 18, but it can be transferred to another Junior ISA before the child reaches age 18.
So if you want to close your Tesco Bank Junior Cash ISA and transfer the balance to another provider, you just have to contact your new provider. They'll arrange everything with us using the ISA Transfer process.
The current annual interest rate is 4.00% Gross/AER (variable). Rate correct as at 15 August 2023.
Please note that rates aren't fixed and may be subject to change.
Interest rate definitions
Gross is the interest rate paid before tax is deducted.
Annual Equivalent Rate (AER) illustrates what the interest rate would be if it was paid and compounded each year.
How interest is calculated
Interest is calculated daily and is added to your Junior Cash ISA account on the anniversary of the account opening. The interest paid is tax free.
The current rules for ISAs are subject to change by HM Revenue & Customs and the value of tax benefits depends on individual circumstances.
Financial Services Compensation Scheme
Your eligible deposits with Tesco Bank are currently protected up to the current Financial Services Compensation Scheme limit, the UK's deposit protection scheme. Any deposits you hold above the current limit are not covered.
Other ways to save
Compare our savings accounts
Compare our savings accounts
Check out our Instant Access Cash ISA for your own tax-free savings
We want you to be happy with your savings account. To help you decide whether the Tesco Bank Junior Cash ISA is right for you please read the key features document and terms and conditions.
Summary Box for our Junior Cash ISA
Junior Cash ISA
What is the interest rate?
4.00% Gross/AER* (variable)
Interest will be earned at a daily rate and applied to the account annually on the anniversary of account opening and at account closure
*Gross is the interest rate paid before tax is deducted. Annual Equivalent Rate (AER) illustrates what the interest rate would be if paid and compounded each year.
Can Tesco Bank change the interest rate?
Yes – The account is a variable interest rate account so we may change the interest rate which applies to the account at any time. If we are going to reduce the interest rate we will always contact you and give you at least 14 days’ notice by letter or email (depending on your paperless preferences)
The reasons which may lead us to reduce the interest rate can be found in the “Interest” section of your Terms and Conditions of the account, and include, for example, changes in market conditions which affect interest rates
If we increase the Standard Interest Rate, the new rate can be viewed in Online Banking and we may also contact you to let you know
What would the estimated balance be after 12 months based on a £1,000 deposit?
The estimated balance would be £1,040.00.
This is only an example and does not take into account your individual circumstances. The example assumes that no further deposits or withdrawals are made, any interest earned stays in the account and the interest rate does not change during the 12 months
How do I open and manage this account?
A child can hold a Tesco Bank Junior Cash ISA if they:
Are under 18
Do not have a Child Trust Fund (unless the Child Trust Fund is being transferred into the Tesco Bank Junior Cash ISA on opening)
Are resident in the UK or if not, a Crown employee serving overseas or married to or in a civil partnership with a Crown employee
For more information about this, please contact Her Majesty’s Revenue and Customs (HMRC)
You can apply online and over the telephone:
If the child is under 16, the application to open and manage the account must be made on their behalf by someone who has parental responsibility for them
The person who manages the account is known as the 'Registered Contact
If the child is over 16, they can apply to open and manage the account themselves by calling us on 0345 678 5678.** Please note that we are unable to accept online applications from children under 18
To apply you must provide details of a Linked Account in your own name (the name of the Registered Contact where the child is under 16)
You can deposit a minimum of £1, you don't need to make a minimum deposit on a regular basis and there is no maximum balance limit (subject to ISA subscription limits)
Managing the Account:
You can manage the Account via Online Banking, the Mobile Banking App and over the telephone
Can I withdraw money?
No – the money in a Junior Cash ISA belongs to the child who can only withdraw it when he or she reaches age 18
No money can be withdrawn from the account until the child reaches age 18, but it can be transferred to another Junior ISA before the child reaches age 18
In exceptional circumstances withdrawals may be allowed, for example, where the child is diagnosed with a terminal illness. We need permission from HMRC to do this. For more information about this please contact us
The account can be cancelled within 30 days of receiving the welcome letter.
Previous years’ subscriptions from other Junior ISA providers and Child Trust Funds may be transferred into the account, see the 'Transferring a Junior ISA' section of your Terms and Conditions
The child can apply to become the registered contact on the account when they reach 16 years old
ISA rules are subject to change by Her Majesty's Treasury
There are two types of Junior ISA: a Junior Stocks and Shares ISA and a Junior Cash ISA.
A child can have one Junior Stocks and Shares ISA and one Junior Cash ISA each tax year. The tax year runs from 6 April to 5 April the following year.
The Junior ISA limit for 2023/24 tax year is £9,000. This is the maximum amount you can pay into a Junior ISA each tax year.
This can be paid into a Junior Stocks and Shares ISA, a Junior Cash ISA or a combination of both.
No money can be withdrawn from a Junior Cash ISA until the child reaches age 18, but it can be transferred to another Junior ISA before the child reaches age 18.
Tesco Bank only offers a Junior Cash ISA.
If you decide to cancel your Junior Cash ISA, this won't affect the child's ISA allowance for the current tax year and you can still open another Junior Cash ISA in that tax year. You have 30 days from receiving your welcome letter to cancel your Junior Cash ISA. If you do cancel, we'll refund the money you've paid in.
Other customers have been asking:
Have a question or need help applying? Our friendly, UK-based customer service team is here to help.