Give the gift of a Junior ISA
If you want to invest in the future of your children, why not consider a Junior ISA as a gift option?
Looking for a meaningful gift for your kids or grandkids this Christmas? Or perhaps for your friends’ children, godchildren, nieces or nephews?
Instead of toys or gadgets, why not give them something that lasts – a contribution to their junior individual savings account (Junior ISA or JISA)?
Why choose a Junior ISA?
Junior ISAs provide the same benefits as adult ISAs in that there is no tax on income or profits made on the investments in the ISA. However, the money is locked away until the child turns 18, at which point they can either keep the money invested or withdraw it.
Only a parent or legal guardian can open and manage a Junior ISA1, but anyone can contribute, up to the annual allowance of £9,0002. All you need is a debit card and the child’s JISA account number.
Getting started
If your children already have a Junior ISA, let your friends and family know they can contribute. If you haven’t opened one yet, consider whether this might be a good time to do so.
To open a Vanguard Junior ISA, you need to make a minimum lump sum investment of £500 or a monthly direct debit of £100.
Once the account is set up, there’s no limit to how much can be gifted – up to the annual allowance.
Educational possibilities
Children may not appreciate such gifts straightaway, but a Junior ISA could be a good way to introduce them to the concept of investing and the power of compounding. This is when you earn returns on the money you invest as well as on the returns themselves, so wealth builds up over time.
For example, paying £500 a year into a Junior ISA for 18 years would grow to almost £15,000, based on a hypothetical return of 5.5% a year before fees. This could be a useful nest egg to put towards a house deposit or education costs.
Of course, investments can go down as well as up, but starting early gives young investors time to ride out market ups and downs.
Making contributions to a Junior ISA opens up educational possibilities too. You can help better prepare your children for some of the financial responsibilities of adulthood by discussing the importance of starting early, saving regularly and investing for the long term to achieve their financial goals.
Read more about teaching your children about the value of money.
How to contribute
At Vanguard, you’ll find the ‘gift money’ option on our Junior ISA page. All you need is the child’s name and account number plus your debit card details.
It’s then up to the registered parent – potentially with input from their child – to invest that money. Just remember to tell them that the money is there!
A Junior ISA could give a child an important leg-up in life, helping to fund their ambitions when they need it most.
1 Only one ‘registered contact’ can provide instructions to a JISA manager, including setting up direct debits for regular payments. For an account holder aged under 18, this means a person with parental responsibility for a child.
2 2025-26 tax year.
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Any projections should be regarded as hypothetical in nature and do not reflect or guarantee future results.
The eligibility to invest in either ISA or Junior ISA depends on individual circumstances and all tax rules may change in future.
Important information
Vanguard only gives information on products and services and does not give investment advice based on individual circumstances. If you have any questions related to your investment decision or the suitability or appropriateness for you of the product[s] described, please contact your financial adviser.
This is designed for use by, and is directed only at persons resident in the UK.
The information contained herein is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information does not constitute legal, tax, or investment advice. You must not, therefore, rely on it when making any investment decisions.
Issued by Vanguard Asset Management Limited, which is authorised and regulated in the UK by the Financial Conduct Authority.
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