As a parent, planning for your child’s future can feel like another job on an already busy list. Taking a little time to review where their savings are held, however, could help you make the most of the money being set aside for them. If your child was born between 1 September 2002 and 2 January 2011, you may have opened a Child Trust Fund in their name. While some families keep a Child Trust Fund until the account owner turns eighteen, transferring to a Junior ISA (JISA) can offer several benefits, including a wider range of providers, better interest rates, and different ways to save. That said, switching isn’t always necessary, so it’s worth weighing up whether the added benefits are right for your family.
Pic – Pavel Danilyuk
What’s a Junior ISA?
Like a Child Trust Fund, a JISA is a long-term, tax-free savings account for anyone under 18. A JISA owner can normally take control of the account at 16 and access their savings once they turn 18. Family and friends can contribute to the fund subject to the annual limit which – as of the 2026/2027 tax year – stands at £9,000.
Can your child hold both accounts?
A child can exclusively hold one of the accounts. If you have a Child Trust Fund and would like to open a JISA, the next step is exploring Junior ISA transfer services from reputable providers. Once you’ve found a provider you feel confident in, you can start the application process, which will usually involve filling out a Junior ISA transfer form, informing the provider of how much you want to transfer, and choosing your investment style.
Key differences between a Child Trust Fund and a Junior ISA
Availability
The cut-off for opening a Child Trust Fund was in January 2011, so this account type is no longer open to applications. The government has positioned Junior ISAs as the new equivalent, offering many of the same benefits.
No government cash incentive
Unlike Child Trust Funds, a Junior ISA doesn’t come with a government cash contribution.
Why do families consider a transfer?
Depending on the provider you choose, transferring accounts can give you access to more competitive interest rates and a wider range of savings options. A JISA is a good option if you want the best value savings for the time the money will spend maturing in the account, as it offers different ways to invest.
How does the transfer process work?
The steps involved in a Junior ISA transfer are usually straightforward:
1. Check the existing account.
Confirm the balance, account type, charges, and any transfer conditions.
2. Choose a Junior ISA provider.
Make sure it accepts transfers from Child Trust Funds and offers the account type you want.
3. Ask the new provider to start the transfer.
Each provider is different, so follow their instructions during the transfer process.
4. Let the providers complete the move.
Don’t withdraw money from the old account yourself during the transfer process, as this could affect its tax-free status.
Once I’ve transferred to a Junior ISA, what happens next?
Once the JISA provider has transferred the Child Trust Fund savings in full, the old account closes, and the child will solely hold a JISA. The savings keep their tax-free status, and future contributions go straight into the JISA.
Are there different types of Junior ISA?
Your new account will fall into one of two categories: A Junior Cash ISA, or a Junior Stocks and Shares ISA. Each has different risks and rewards. Research each account type carefully and if in doubt, always speak to an accredited, reputable financial advisor.
- Cash JISA
A Cash JISA works similarly to a standard savings account, but the savings earn tax-free interest. They’re generally considered very low risk, as savings aren’t exposed to stock market movements; however, cash growth may lag behind inflation over time.
- Stocks and Shares JISA
A Stocks and Shares JISA account offers greater growth potential over a longer period, but the value of those investments can fluctuate. It’s considered higher risk than a Cash JISA as your child could get back less than was paid in, if the markets suffer before they turn 18.
Making an informed decision
Transferring a Child Trust Fund to a Junior ISA can offer worthwhile benefits. However, it’s always worth taking time to compare JISA providers thoroughly and find the best one for you. Always read the provider’s terms thoroughly, and if you’re unsure, seek support from a reputable, accredited financial advisor so you can make a confident decision about your child’s savings.
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