Investing for Children
Invest for a child’s future with the UK’s No.1 investment platform for private investors
Important information - The value of tax savings depends on individual circumstances and tax rules can change over time. Investments can go down in value as well as up, so a child could get back less than invested. A Junior SIPP is a type of pension for people happy to make their own investment decisions, and is not accessible until age 55 which is likely to rise by the time a child reaches retirement. This is not personal advice. If you are unsure if an investment is right for you or your grandchild, please seek advice.
Why invest for a child?
Even small amounts tucked away can build up a substantial nest egg, so the sooner you start putting money away for your child, the better.
Provide a welcome financial boost when they need it
Help them with the future costs of education, buying a home, getting married or even retiring
Reduce the amount of inheritance tax that might need to be paid in future
And assuming a growth rate of 5% a year after charges, we’ve worked out in the table below how much a monthly investment could be worth in the future.
Remember investments can fall as well as rise in value, so your child could get back less than you put in. Inflation can also reduce the spending power of money over the long term.
Potential growth of a child's investment account
| Time period | £50 per month | $100 per month | £300 per month |
|---|---|---|---|
| 5 years | £3,404 | £6,809 | £20,427 |
| 10 years | $7,749 | £15,499 | £46,497 |
| 20 years | £20,372 | £40,745 | £122,237 |
Unsure which account is right for your child?
Whichever account you choose, you can be confident it will be easy to manage, there will be a wide investment choice and it will be great value for money. See how our three accounts for children compare. Tax rules can change and benefits depend on individual circumstances.
Junior ISA
Free from UK income and capital gains taxes.
Once a parent or guardian opens a Junior ISA, grandparents can make contributions within the annual limit of £9,000 (for the 2025/2026 tax year). The account converts to an adult ISA at age 18.
Junior ISA top ups can be made online, by post or by telephone as a lump sum or via monthly savings.
Junior SIPP (Child’s pension)
Free from UK income and capital gains taxes.
Once opened by a parent or legal guardian, grandparents can make lump sum contributions by cheque or by telephone using a debit card.
The account benefits from 20% tax relief on contributions up to the annual limit, so a gross contribution of £3,600 (the maximum for most children) only costs £2,880.
Bare Trust Account
This account can be opened by anyone, including grandparents.
Assets are held in trust for a child until they turn 18, although earlier withdrawals are possible if they are used for the benefit of the child. They are normally taxed as if they belong to the child. Can be useful for inheritance tax (IHT) planning.
Why choose HL for your child's investments?
Security: we're trusted by over 1.9 million clients
UK-based helpdesk: speak to our client support experts if you have any questions
Family-friendly: it's easy to link and manage all your family's accounts in one place
Award-winning: we've won over 200 awards
Expertise: investment ideas from our expert analysts
Investing for a grandchild?
Although most accounts for children must be opened by a parent or legal guardian, there are exceptions.
Grandparents can pay into our three junior accounts including a Junior ISA and Junior SIPP. They can also set up and manage a Bare Trust Account, giving their grandchild even more of a helping hand for the future.