By MONEY MAIL REPORTER
Updated: 06:00 GMT, 13 March 2025
The number of parents and grandparents paying the full £9,000 annual allowance into a child’s junior individual savings account (Jisa) has soared by 45 per cent.
More than 70,000 Jisa accounts had been maxed out in 2022-23 – up from 49,000 in 2021-22 – Freedom of Information data obtained by wealth manager RBC Brewin Dolphin reveals.
Until now, the number of Jisas with the maximum amount of cash paid in had been falling since 2019-20 (when the limit for the children’s tax-free wrappers was just £4,368).
Golden savings: Parents and grandparents are increasingly maxing out Jisas, an FOI shows
Daniel Hough, financial planner at RBC Brewin Dolphin, says: ‘While some people may be able to maximise [a Jisa] for one or a couple of years, they may not be able to do so consistently.’
Mr Hough adds that as a child can take control of their Jisa from the age of 16, and access the funds from 18, parents or grandparents may be concerned about how their money will be spent.
A junior self-invested personal pension (Sipp) could be a good alternative – these prevent children or grandchildren from taking control of the money until they retire.
The limit for contributing to a junior Sipp is £2,880, which can total £3,600 after government contributions.
What are the best Junior Isa rates?
There are a number of Junior cash Isas paying rates above 4 per cent – many of which are on offer from building societies.
The top rate in the independent This is Money savings tables is 4.89 per cent from Bath Building Society.
Other top deals come from Nottingham BS, Beverley BS and Coventry BS.
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Number of maxed out Junior Isas surges by 45% as parents and grandparents utilise £9k limit
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