Junior ISA rates: comparing cash and stocks and shares accounts

A JISA can only be opened by a parent or guardian for a child under 18. The annual allowance is £9,000 per child per tax year. Money is locked until the child turns 18, when the JISA automatically converts to an adult ISA and the child takes control. You cannot hold both a Child Trust Fund (CTF) and a JISA — if your child has a CTF, transfer it to a JISA to access better rates. Either a Cash JISA, Stocks and Shares JISA, or both can be held (but only one of each type per child).

Cash JISAs offer a guaranteed interest rate with no risk to your capital. They're ideal for money needed within 5 years or as part of a diversified approach (shifting from stocks to cash as the child nears 18). In early 2026, competitive Cash JISA rates are around 4.5–5.25% AER. Top providers historically include Coventry Building Society, Nationwide, Yorkshire Building Society, and Shawbrook. Always check the latest rates before opening — they change frequently.

Stocks and Shares JISAs invest in funds, shares, and bonds. Over 10–18 years, the expected returns significantly exceed cash rates. For a child born today, a global index fund in a Stocks and Shares JISA is generally the recommended approach. Key comparison points: platform fees, fund charges, investment choice, and ease of use. Vanguard Investor JISA is popular for its low-cost index funds (0.15% platform fee). Hargreaves Lansdown Junior ISA has wider choice. Fidelity and AJ Bell are also competitive.

For children under 10, a Stocks and Shares JISA with a global index fund is almost always the better choice — the long time horizon means short-term volatility is irrelevant. As the child approaches 16–18, gradually switching to a Cash JISA reduces the risk of a market crash wiping out savings just before they're needed. A practical approach: open a Stocks and Shares JISA for long-term growth, and begin transferring to a Cash JISA at around age 14–15.