Junior ISA for grandchildren: how grandparents can pay in

Can grandparents pay into a Junior ISA?

Yes. gov.uk says anyone can pay money into a Junior ISA, but the total amount paid in cannot go over £9,000 in the 2026 to 2027 tax year. The tax year runs from 6 April 2026 to 5 April 2027.

The limit is for everything paid in for the child, whoever pays it, across the child’s cash and Stocks and Shares Junior ISAs. gov.uk’s example: if £2,000 is paid into a child’s cash Junior ISA in the tax year, only £7,000 could be paid into their Stocks and Shares Junior ISA in the same tax year.

Paying into a Junior ISA, 2026/27

Most that can be paid in

£9,000

By everyone together, across the child's Junior ISAs

Who can pay in

Anyone

Including grandparents, relatives and friends

Who can open one for a child under 16

Parent or guardian

With parental responsibility

When the money can be taken out

At 18

With exceptions, such as terminal illness

An illustration. This is not tied to anyone. If a parent pays in £4,000 in a tax year and grandparents pay in £3,000, £7,000 has been paid in, and £2,000 of the £9,000 limit is left for that tax year.

Can a grandparent open a Junior ISA?

Only parents or a guardian with parental responsibility can open a Junior ISA for a child under 16, so a grandparent without parental responsibility cannot open one for a grandchild under 16. Children aged 16 and 17 can open their own.

The person with parental responsibility who opens the account is the registered contact, who manages it. A child of 16 or over can become the registered contact. The money belongs to the child and cannot be taken out until they turn 18, with exceptions such as terminal illness. A child cannot have both a Junior ISA and a Child Trust Fund.

How do grandparents pay in?

How someone other than the registered contact adds money depends on the account. The registered contact, or the provider, can say how others can add money. Every payment counts towards the £9,000 limit for the tax year it is paid in.

Does the £100 interest limit apply to grandparents?

No. There is a £100 limit on interest from money given by a parent, known as the parental settlement rule. gov.uk says the limit does not apply to money given by grandparents, relatives or friends, or to money in a Junior ISA. See Personal Savings Allowance for how the £100 limit works for children’s savings outside a Junior ISA.

Do gifts into a Junior ISA count for Inheritance Tax?

They can, in some cases. Money in a Junior ISA belongs to the child, so a payment from a grandparent is a gift of money to the child. gov.uk’s Inheritance Tax rules on gifts set out which gifts are exempt, and gifts outside the exemptions can count for Inheritance Tax if the giver dies within 7 years of giving them. This is the 7 year rule. The table lists the exemptions that may be relevant to payments into a child’s savings.

Whether a particular payment is exempt depends on the giver’s circumstances, so this page cannot say whether it is.

What about a Stocks and Shares Junior ISA?

A Stocks and Shares Junior ISA holds investments, so its value can fall as well as rise, and the child may get back less than was paid in. The money normally cannot be taken out until the child is 18, so its value at that point is not guaranteed. Anyone can pay into one, within the same £9,000 limit that covers the child’s cash Junior ISA.

What is the highest Junior Cash ISA rate?

The highest Junior Cash ISA rate in our table is 4.15% AER (variable), last checked on 30 October 2026. A variable rate can change, and some accounts have conditions on who can open them, which our table lists against each account. Our Junior ISA page has the full table, ranked by rate, and the Junior ISA calculator shows what regular payments could add up to by 18.