Interactive Investor

ISA guides

Can grandparents open an ISA for grandchildren?

Grandparents can’t open Junior ISAs, but they can contribute up to £9,000 per year.

Can grandparents open a Junior ISA for their grandchildren?

As a grandparent, you cannot open Junior ISAs for your grandchildren unless you are their legal guardian. 

Only parents and legal guardians can open Junior ISAs for children under 16. Children aged 16 and 17 can open a Junior ISA for themselves. 

These rules apply to both Cash Junior ISAs and Stocks and Shares Junior ISAs.


Can grandparents make contributions to a Junior ISA?

While you cannot open a Junior ISA as a grandparent, you can contribute to one after it has been opened. 

In fact, anyone can contribute money to a Junior ISA up to the £9,000 Junior ISA annual allowance

Junior ISAs are free from Income Tax, Capital Gains Tax or tax on UK dividends. This means your grandchild gets to keep any interest or investment profits earned in their Junior ISA. 

The money in a Junior ISA is locked away until your grandchild turns 18. At that point, the account turns into an ISA, and they can withdraw money when they choose to. 


How can grandparents make contributions to a Junior ISA?

The method for making contributions to a Junior ISA will vary depending on your provider. 

If your grandchild has an ii Junior ISA, you can contribute to it by bank transfer. 

To send money from a UK bank account, please send your money to the following bank details: 

Account name: Interactive Investor Services Limited

Account number: 00000000

Sort code: 62-31-61

Reference: Account number and child's name 


The parent or guardian who opened the Junior ISA can also contribute by debit card or direct debit


Can grandparents decide where the money in a Junior ISA in invested?

If you are a grandparent, you cannot decide how the money in a Junior Stocks and Shares ISA is invested. 

The parent or guardian who opened the account is responsible for managing the investments until your grandchild turns 16. At that point, they can choose to manage their investments. When they turn 18, they will be responsible for managing their own ISA. 


Can I use an ISA to save for my grandchildren?

Another option to save money for your grandchildren is to open an ISA in your own name and save on their behalf. 

The money in the ISA would be yours rather than your grandchild’s, but it would allow you to choose when you give them the money. By saving in your own ISA, you could give them some of the money before they turn 18. Alternatively, you could save for longer and gift the money to your grandchild when they are older than 18. 

However, the contributions to this ISA would count towards your own ISA allowance which would limit the amount of money you can save in ISAs for yourself. Other family members may also be less willing to contribute to an ISA which is not in your grandchild’s name. 

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Simply log in to add a new Junior ISA.

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