SPOTLIGHT ON:

Children’s Savings – Starting Strong for Their Future

Let’s talk about giving the kids a head start.

We all want to do the right thing for our children—but when it comes to saving for their future, it’s not always clear where to begin. Luckily, there are plenty of tools out there to help you build a financial foundation they can stand on later in life. And with a few smart steps now, you can make a big difference down the road.

From Junior ISAs and pensions to Premium Bonds and savings accounts, there are options to suit all goals—whether you’re saving for a first car, university fees, or even retirement (yes, really!). Let’s break it all down.

Why start early?

Because time is your best friend here. The earlier you start saving, the more time interest, tax relief, and investment growth have to work their magic.

📌 1.25 million Junior ISAs were opened in 2022/23 alone.
📌 HMRC is holding over 670,000 unclaimed Child Trust Funds—some worth thousands.
📌 Inflation is still hovering at 3.5%, so bigger deposits will likely be needed for housing and education in years to come.

Junior ISAs – Tax-Free and Easy

The go-to savings wrapper for most families.



• 💰 Up to £9,000 per child per tax year (2025/26)
• 💼 Managed by you until the child is 16, then fully theirs at 18
• 📈 All interest, dividends and growth are tax-free
• 📚 One cash and one stocks & shares JISA per child

We’ll help you make sure subscriptions stay within limits and can point you to providers offering strong cash JISA rates (around 4% AER at the time of writing).

Still Got a Child Trust Fund?

If your child was born between 1 September 2002 and 2 January 2011, they might still have a CTF—these need reviewing!

• You can’t hold both a CTF and a JISA
• Transfers don’t use up the £9,000 JISA allowance, so you can still top it up
• Some CTFs have high fees—moving them could give better returns

We can help you track forgotten CTFs, compare options, and transfer if it makes sense.

Children’s Savings Accounts – Flexible but Watch the Tax

Basic savings accounts are easy to open, but interest over £100 (per parent) can be taxed as the parent’s income if you’re the one funding it. Grandparents and others aren’t caught by that rule, though.

• 🧮 Personal allowance still applies: £12,570 per child
• 💸 Savings rates are currently around 4–5% AER
• ✅ Best for small balances or gifts from other relatives

Premium Bonds – For Fun and Flexibility

No guaranteed return, but many families like the element of surprise.

• £50,000 max holding
• 3.8% prize fund rate (tax-free)
• Instant access before age 16
• Tax-free and fun—what’s not to like?

Junior SIPPs – Yes, You Can Start a Pension from Birth

This one’s more long-term, but the tax perks are strong.

• Max annual contribution: £2,880 net
• Government adds 20% to bring it to £3,600
• Locked in until age 57 (for now)

Pension planning for a child might sound intense, but it’s a brilliant way to pass on wealth tax-efficiently, especially if you’re a grandparent looking to give without triggering inheritance tax.

2025/26 Snapshot

Allowance2025/26 LimitJunior ISA Subscription£9,000Child Trust Fund Subscription£9,000Premium Bonds Max Holding£50,000Junior SIPP Gross Contribution£3,600 (£2,880 net)Personal Allowance£12,570Starting-rate Band (Interest)£5,000Parental Settlement Threshold£100 interest

Six Simple Steps to Get Started

1. Check for existing JISAs or CTFs – we can help if you’re unsure
2. Define your savings goal – short-term or long-term?
3. Use the right order: JISA → Premium Bonds → Savings Account → Junior Pension
4. Set up regular payments – from as little as £25/month
5. Review yearly – we’ll send reminders to keep it easy
6. Teach your child – show them their savings and help build good habits early

How We Help

We keep things simple and support you all the way:

• Monitor contributions and avoid overpaying
• Recommend providers offering the best value
• Complete the forms for CTF transfers
• Track gifts for inheritance tax
• Report interest where needed in your self-assessment
• Stay up to date with government changes and tax rules

Final Thoughts

Setting money aside for your children isn’t just about savings—it’s about giving them choices and confidence later on. Whether you’ve got £25 a month or a lump sum to work with, we’ll tailor a plan that fits your goals, makes the most of the tax rules, and grows with your family’s needs.

If you’d like to chat about opening a Junior ISA, switching a CTF, or anything else from this guide, just get in touch. We’re here to help.

Let’s make your kids’ future that bit brighter—without adding more admin to your plate.