Junior ISA vs children's savings account: what is the difference?

What is each account?

A Junior ISA is a long-term, tax-free savings account for a child. gov.uk says there are two types, a cash Junior ISA and a Stocks and Shares Junior ISA, and a child can have one or both. A children’s savings account, in this guide, is a savings account in a child’s name that is held outside an ISA. It has no ISA tax wrapper, and gov.uk says there are different rules for tax on children’s accounts, set out below.

Junior ISA and children's savings, at a glance

Junior ISA limit, 2026 to 2027

£9,000

Across a child's cash and Stocks and Shares Junior ISAs

Junior ISA money can be taken out

At 18

With exceptions, such as terminal illness

Child can take control of a Junior ISA

At 16

The money still cannot be taken out until 18

Interest limit on money given by a parent, outside an ISA

£100

A tax year, counted for each parent. It does not apply to Junior ISAs

How do the two accounts compare?

The table follows gov.uk’s Junior ISA rules. A children’s savings account is outside those rules, so where a point depends on the account, the table says so.

How is the interest taxed?

In a Junior ISA. gov.uk says that with a cash Junior ISA there is no tax on interest on the cash, and that with a Stocks and Shares Junior ISA there is no tax on any capital growth or dividends.

Outside an ISA. gov.uk says there is usually no tax to pay on children’s accounts. Its page on children’s savings sets out two cases where tax can arise:

• Money given by a parent. If the child gets more than £100 in interest in the tax year from money given by a parent, gov.uk says to tell HMRC, and that the parent will have to pay tax on all the interest if it is above their own Personal Savings Allowance.
• Income over the child’s Personal Allowance, for example from a trust. gov.uk says HMRC must be told, and that the child will have to pay the tax on this.

The tax year runs from 6 April to 5 April. The £100 limit does not apply to money given by grandparents, relatives or friends, or to money in a Junior ISA or a Child Trust Fund.

HMRC’s manuals add two details. The £100 is counted separately for each parent, and when it is exceeded, HMRC treats all of the interest, not only the part above £100, as the parent’s income.

An illustration. This is not tied to anyone, and the amounts are examples, not typical figures. A parent gives a child money, which earns £80 of interest in a tax year. That is under £100, so the rule does not apply that year. If it had earned £120, the limit would be exceeded and HMRC would treat all £120, not just the £20 above £100, as the parent’s income. Whether the parent then pays tax depends on their own Personal Savings Allowance, as gov.uk describes. If the same money had come from a grandparent, or sat in a Junior ISA, the £100 limit would not apply.

Allowances. Under the parent rule, whether the parent pays tax depends on their own Personal Savings Allowance, as gov.uk says above. See Personal Savings Allowance for how that allowance works.

How much can be paid in?

Junior ISA. gov.uk says anyone can pay money into a Junior ISA, but the total paid in cannot go over £9,000 in the 2026 to 2027 tax year. The limit covers everything paid in for the child, 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 from 6 April 2026 to 5 April 2027, only £7,000 could be paid into their Stocks and Shares Junior ISA in the same tax year. A child can have one cash Junior ISA and one Stocks and Shares Junior ISA.

Outside an ISA. The £9,000 limit is the savings limit for Junior ISAs, so it does not apply to a children’s savings account. What can be paid in, and by whom, depends on the account’s terms. The tax rules on the interest still apply, as set out above. The £100 rule covers money given by a parent, but not money from grandparents, relatives or friends: see how grandparents can pay into a Junior ISA.

When can the money be taken out?

Junior ISA. gov.uk says the money belongs to the child and cannot be taken out until they are 18, though there are exceptions. Early access where a child is terminally ill is one: the registered contact can apply to HMRC to take money out early. HMRC’s manual describes it the same way, saying that the child, and no one else, may withdraw funds after their 18th birthday.

Control. The person with parental responsibility who opens a Junior ISA is the registered contact and manages the account. Only a parent or guardian with parental responsibility can open one for a child under 16. From 16 the child can take control by becoming the registered contact, and children aged 16 and 17 can open their own. The money still cannot be taken out until 18.

At 18. The child can take out any money in their Junior ISAs, and the Junior ISAs turn into an adult ISA automatically. gov.uk also says money cannot be transferred between a Junior ISA and an adult ISA. See what happens to a Junior ISA at 18.

Children’s savings account. None of these Junior ISA rules apply to it. When money can be taken out, who can pay in, who manages the account and what happens at 16 or 18 all depend on the account’s own terms, so this page cannot give one answer.

Is the money protected?

Cash. FSCS says that if a UK-authorised bank, building society or credit union fails, its protection is up to £120,000 per person per banking licence. FSCS treats banks that share a banking licence as one, so the limit applies to the total held across them. The limit applies to deposits and savings, so it can apply to cash in either type of account when the provider is a UK-authorised bank, building society or credit union. FSCS says the provider must be authorised by the Prudential Regulation Authority, which can be checked on the Financial Services Register.

Stocks and Shares Junior ISA. The money is invested, so capital is at risk. FSCS says it cannot accept claims for poor investment performance, because the value of investments can go down as well as up. For investments, it says it may be able to protect up to £85,000 per person per firm if a provider goes out of business and there is a shortfall in the money or assets it holds.

Of the 20 platforms we track, 12 offer a Stocks and Shares Junior ISA. Our Junior ISA page lists them without ranking them, and the Stocks and Shares ISA page lets savers compare platform fees. See what a Stocks and Shares ISA is for how the investment version of an ISA works.

Where can I find Junior ISA rates?

Our Junior ISA page has the Junior Cash ISA table ranked by rate, with the rules summarised. The Junior ISA calculator shows what regular payments could add up to by 18.