A Junior ISA (JISA) is a tax-free savings account that parents or guardians can open for children under 18. These accounts are growing in popularity as a long-term investment tool, helping children build financial security from an early age. Holly Mackay, founder and CEO of Boring Money, explains that JISAs are designed to give young people a financial head start by the time they reach adulthood. There are two main types of JISAs: the Junior Cash ISA and the Junior Stocks and Shares ISA. The cash version is more common because it offers a sense of safety, but the stocks and shares option can offer significantly higher returns over time. According to Mackay, if the money is intended for long-term growth—like for a child who will be 18 in 18 years—stocks and shares are generally more rewarding. However, if the money is needed sooner, a cash ISA is more practical. Over the past five years, high-risk investment portfolios in a stocks and shares JISA have returned an average of 9.75% annually after fees. For example, if £2,000 were invested each year into such a JISA for 18 years, it could grow to around £97,600. In comparison, a cash ISA earning the current Bank of England interest rate would only grow to about £43,100. Mackay points out that these returns are unusually high, as the past five years have been particularly strong for global markets. JISAs can be engaging for children, especially with the option to invest in specific companies like Coca-Cola or Samsung. Some providers allow parents to let their children choose which stocks to buy, making the concept of investing more tangible. Once a child turns 18, the funds become their own, and they can either withdraw the money or continue investing, with the JISA automatically transitioning into an adult ISA. This helps young adults build financial knowledge alongside their savings. The annual contribution limit for JISAs is £9,000, and the accounts are useful for teaching children the value of saving and investing. They can also serve as a practical way to give gifts for birthdays or Christmas. However, the money is locked in until the child turns 18, which can be a drawback if a parent suddenly needs access to the funds. Most providers offer competitive fees, with some, like Hargreaves Lansdown and Fidelity, charging no setup fees. Parents should always check with their chosen provider for specific costs. To open a JISA, parents need to choose a provider and complete an online form that helps select a suitable investment portfolio. Some providers, such as Fidelity, Hargreaves Lansdown, and Vanguard, are often recommended for their quality services. A small initial deposit—sometimes as little as £1 for a cash ISA or £50-100 for a stocks and shares ISA—is needed to get started. A child's National Insurance number may also be required. Children who were born between 2002 and 2011 and have a Child Trust Fund (CTF) can transfer their existing funds into a JISA, which offers more flexibility and better investment options. However, not all providers accept CTFs, and some may charge exit fees. Parents should check with their provider to ensure a smooth transfer.