What is the ISA allowance for a Junior ISA?

The Junior ISA (Individual Savings Account) allowance for the tax year is set at £9,000. This allowance is the maximum amount that can be contributed to a Junior ISA on behalf of a child within a given tax year. The purpose of the Junior ISA is to encourage saving for children, allowing parents and guardians to contribute to their savings tax-free until the child reaches 18 years of age.

The amount can be split between Cash Junior ISAs and Stocks and Shares Junior ISAs at the account holder’s discretion, providing flexibility in how savings are managed. This limit is updated periodically by the government, reflecting changes in fiscal policy and inflation, which is why understanding the current limit is crucial for planning the optimal savings strategy for children.

Other figures, such as £5,000, £15,000, or £12,000, do not reflect the established allowance for Junior ISAs and may pertain to other savings accounts or investment vehicles, further emphasizing the necessity of staying informed about current rates.