What is a Junior ISA?

A Junior Stocks & Shares ISA (JISA) is a tax-free investment account designed to help you build a nest egg for a child's future.

The annual limit: You can pay up to £9,000 into a child's JISAs each tax year.

Shared allowance: A child can only have one Cash JISA and one Stocks & Shares JISA at any time. The £9,000 limit is shared across both of these accounts.

Your personal allowance: The £9,000 limit applies strictly to the child. Any money you put into their JISA does not affect your own £20,000 adult ISA allowance. Tax advantages: Just like a standard ISA, you do not pay Income Tax or Capital Gains Tax on any growth, dividends, or returns the investments generate.

Opening and contributing: Only a parent or legal guardian can open a JISA. However, once it is set up, anyone can pay money into it, including grandparents, family and friends.

Who owns the money: Any money paid into a JISA is an irreversible gift. It legally belongs to the child.

Locked until 18: The funds are locked away and cannot be withdrawn by you or the child until they turn 18.

Turning 18: On the child's 18th birthday, the account automatically converts into a standard adult Stocks & Shares ISA in their name, and they gain full access and control over the money.

When you open a Monzo Junior Stocks & Shares ISA, you can choose from ready-made portfolios, Exchange-Traded Funds (ETFs), or Exchange-Traded Commodities (ETCs). The money is allocated across various assets, such as company shares, government and corporate bonds, real estate, and physical commodities like gold.