4.3 Junior ISAs

The government allows UK residents to open Individual Savings Accounts (ISAs). The key benefit of these accounts is that you do not have to pay tax on the income that you earn on your savings.

You must be at least 18 years old to open an ISA. The maximum amount you can put in your ISA is presently £20,000 per year.

If you are under 18, then your parent or guardian can open a Junior ISA for you. At present, a maximum of £9,000 can be deposited in a Junior ISA every year.

Note that you cannot control a Junior ISA in your own name until you are 16 years old. Your parent or guardian manages your Junior ISA on your behalf. But the money in your Junior ISA belongs to you.

Finally, to be able to withdraw money from a Junior ISA you must be 18 years old.