Investing in a Junior ISA may be ideal for your child

By the Editorial Team · Friday, August 28, 2026

App-based banks like Starling and Monzo now offer no-fee accounts for children under 16 with parental controls such as spending limits and transaction notifications to help teach money management. These digital tools, alongside traditional savings options like Junior ISAs, provide families with diverse ways to encourage financial responsibility while maintaining oversight.

As a new school year approaches, many parents are considering ways to introduce their children to money management while maintaining oversight. Children’s bank accounts have evolved significantly from traditional passbooks, now offering more interactive and controlled digital options that aim to teach financial responsibility.

Modern app-based banks like Starling and Monzo provide free accounts for under-16s, allowing parents to set spending limits, freeze cards, and receive notifications of every transaction. These features enable children to manage money with parental oversight, including options for regular top-ups of pocket money and the ability for family and friends to contribute funds via online links. Both banks require an adult account to open a child’s account but do not charge fees for these services. These providers have also been well rated by customers and financial experts.

Other specialized financial apps such as GoHenry, HyperJar, Nimbl, Osper, and Rooster Money — now owned by NatWest — offer additional functions like chore tracking and educational tools. However, these often come with subscription fees, which may be a consideration for families weighing the cost-benefit of such features.

Common across all children’s accounts is the requirement of parental consent before issuing debit cards, and restrictions on overdrafts and payments to certain merchants, such as betting shops. At age 16, many accounts expand access, allowing children to make bank transfers and establish direct debits, making education about fraud prevention increasingly important.

To foster savings habits, some children’s accounts include linked savings options. For example, Monzo offers 2.75% interest on linked savings accounts, while Nationwide provides a higher rate of 5%. However, many traditional children’s savings accounts are still designed primarily for parental management, often requiring branch visits or postal applications. Importantly, children can earn up to £18,570 in tax-free interest annually.

For longer-term savings, experts suggest Junior Individual Savings Accounts (ISAs), which lock funds until the child turns 18. Investment Junior ISAs may be particularly advantageous due to their potential for greater growth over time, despite inherent risks in market fluctuations. Providers such as AJ Bell, Hargreaves Lansdown, Fidelity, Freetrade, and Interactive Investor offer Junior ISAs, often with no fees.

Concerns about impulsive teenage spending may be mitigated by data from Hargreaves Lansdown, which found that 85% of Junior ISAs accessed in 2024-25 retained invested funds one year later, with 25% of account holders even adding to their investments during that period.

Overall, the current landscape of children’s financial products presents varied tools for parents aiming to balance teaching fiscal responsibility with prudent oversight, whether through app-based accounts or longer-term savings and investment vehicles.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.