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Investing for Children

Investing for Children

Find the account that's right for your child

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 your 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 your child reaches retirement. If transferring a pension please ensure you will not lose valuable guarantees or incur excessive exit penalties. This is not personal advice. If you are unsure if an investment is right for you or your child, 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.

Free guide to Investing for Children

Find out how you can start investing for a child or grandchild's future.

Download your free guide

Time period £50 per month £100 per month £300 per month
5 years £3,404 £6,809 £20,427
10-19 years £7,749 £15,499 £46,497
20+ years £17,333 £34,666 £103,999

Free guide to Investing for Children

Find out how you can start investing for a child or grandchild's future.

Download your free guide

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.

Overview

Tax benefits

Minimum to open

Maximum contributions

Eligibility

Junior Stocks and Shares ISA

Why wait to start investing in their future? A Junior ISA is a tax-efficient investment account for children under 18, and anyone can add money to it.

More on Junior ISAs

Open an account

Tax benefits

  • Tax-free growth
  • No UK tax on income
  • Tax-free withdrawals from age 18

Minimum to open

£100
lump sum

or

£25
per month

Maximum contributions

£9,000 per year (for the 2020/2021 tax year)

Eligibility

  • Parents or guardians can open a Junior ISA for their child, if the child is a UK resident and under 18 years old
  • Children born between 1 September 2002 and 2 January 2011 need to have transferred their Child Trust Fund to a Junior ISA to open an account

Junior SIPP

A Self-Invested Personal Pension you can start on behalf of a child to help them invest for retirement.

Find out more

Open a Junior SIPP

Tax benefits

  • 20% boost from the government
  • Tax-free growth
  • No UK tax on investment income (i.e. dividends and interest payments)
  • Up to 25% can usually be withdrawn tax free, the rest is taxed as income

Minimum to open

£100
lump sum

or

£25
per month

Maximum contributions

£3,600
per year (including £720 tax relief) for the 2020/2021 tax year

Eligibility

  • Parents or guardians can open a Junior SIPP for their child, if the child is a UK resident

Junior Investment Account

Create a valuable nest egg for a child’s future with no investment limits or access restictions.

We’re sorry, this service isn’t available right now.

Find out more

Tax benefits

  • Investments held on behalf of a child are usually taxable at their rates

Minimum to open

£1

or

£25
per month

Maximum contributions

Unlimited

Eligibility

  • Anyone can open a Junior Investment Account on behalf of a child
  • The person giving the money, the person running the account and the child all need to be UK or EEA resident

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 Junior Investment Account, giving their grandchild even more of a helping hand for the future.

Find out more about investing for grandchildren