What happens to a Junior ISA at 18?

Junior ISAs are a popular savings account for children, with 1.25 million opened in 2022-2023, and 1.37 million opened in 2023-2024 according to gov.uk.

Year on year, the contributions to these accounts are getting higher, but a frequently asked question is ‘what happens to a Junior ISA when the child turns 18’. 

Whether you’re reading this and you’re a parent of an 18-year-old, or you’ve just turned 18 yourself and you’re curious to know what happens next with your Junior ISA, we’ve got you covered in this guide.

What happens when a Junior ISA matures?

As soon as your child turns 18, this is when the Junior ISA effectively ‘matures’. This is because they’re now classed as an adult, meaning they have full access to the money, and can choose to withdraw or it is re-invested into an adult ISA. 

As for the specifics of what happens when it matures, here is everything you need to know:

• The Junior ISA (JISA) will be switched to an adult ISA, meaning no more money can be deposited into the account directly by the parent/guardian.
• The child named on the JISA will become the registered contact, rather than the parent or guardian.
• The 18-year-old can now move and withdraw whenever they please (but it’s always best for them to assess their options). 

What can my child do with their Junior ISA at 18?

From the age of 18, it’s their choice how to use the money. If you’ve discussed this pot and the benefits of saving or investing, hopefully they’ll have a clearer picture of the options available, but ultimately, the decision is theirs.

If you’re reading this and your child has just turned 18, here are some of the ways you can think about working with the money:

Keeping it all in and saving/investing 

There are a few options they can choose from if they pick this route:

Lifetime ISA - Saving for your first home deposit 

A Lifetime ISA* can help if they’re saving to buy their first home (or later life). The Lifetime ISA has the benefit of a 25% Government bonus on every £1 they save each tax year.  So, if they save the maximum Lifetime ISA allowance of £4,000, the Government will add £1,000.

They are welcome to start with smaller contributions, and will still receive the 25% government bonus (e.g. save £100 and get an extra £25 added). This gives them a head start toward a first-home deposit.

Things to keep in mind for the Lifetime ISA:

• Money must be used for a first home or kept in the account until age 60 to avoid a withdrawal penalty.
• Their first home must cost £450,000 or less.
• They will need to wait 12 months from their first contribution before using the money for their first-time home purchase.
• They must be aged between 18-39 to open an account.

If they are aiming to buy their first property and follow the rules, a Lifetime ISA could help them grow their deposit faster.

Stocks and Shares ISA - Investing for their future

If they are not focused on buying a first home just yet or simply want more flexibility, a Stocks and Shares ISA* may be a better choice for their needs. They can invest up to £20,000 each tax year, starting from £25 a month with Unity Mutual, or £10 a month if it’s a direct debit.

There is no Government bonus with this account, but there are also no withdrawal penalties, so they can take money out whenever they need to. However, many people use a Stocks and Shares ISA for long-term plans, education, travel, or building wealth over time.

Things to keep in mind for a Stocks and Shares ISA:

• Withdrawals are flexible, but investing works best over a long period
• Returns are not guaranteed
• Their money is invested in the stock market, which means their capital can rise and fall
• They could get back less than they put in

A Stocks and Shares ISA could give them the freedom to access their money at any time and build savings in their own way and start their journey into stocks and shares.

Invest some money, spend some money

Another approach is to invest some of their money and withdraw some to spend on something they want (or want to do).

For example, they could keep some in a Lifetime ISA for their first home, invest some in a Stocks and Shares Flexible ISA, and withdraw some to spend on themselves. 

This option in particular might suit those who want more balance, knowing saving and investing is important, but also want to enjoy some of their money in the immediate future too. 

Withdraw everything

The last option they have is to withdraw everything from their ISA. If they’re choosing this option, it’s a good idea to make a plan beforehand. 

They don’t need to make a decision straight away, the money can stay in their new adult ISA for as long as they need. 

What matters is avoiding a choice they might regret later, so taking time to research and think through what works best for their situation is always worthwhile.

Can you access a Junior ISA before 18?

Your child can take control of their Junior ISA from the age of 16. They won’t be able to withdraw any of the money before they turn 18, but they can do the following:

• Transfer/Open a Junior ISA and contribute their own money up to the maximum JISA yearly allowance.
• Become the registered contact for their Junior ISA opened by the parent/guardian.
• Change the account provider (only if they become the registered contact).
• Transfer the account from a Junior Cash ISA to a Junior Stocks and Shares ISA (or vice versa).

At this age, they may not have the education or want to be in control of this, but it’s always good to show those who do what’s possible. 

How to access Junior ISA money at 18? (Step-by-step)

Here’s a complete step-by-step guide on how your child can access their Junior ISA at the age of 18:

Note: This process is not going to look the same for every provider, so make sure to do tailored research and follow your provider’s step-by-step instructions.

Can parents withdraw from a Junior ISA before this time?

No, in most cases, it’s not possible for the parent or guardian to withdraw from the Junior ISA. Even though they created the account, the account still belongs to the child, so it’s their decision what happens with the money. The only exception is if there is some form of serious illness or death, in which case, the parent or guardian may be able to withdraw.

If you want to learn more about the specifics for each case, it’s worth checking out the government Junior ISA close, void, or withdrawal page. It tells you exactly what you can do in every scenario.

Adult ISA vs Junior ISA: What’s the difference?

At the age of 18, your child’s Junior ISA becomes an adult ISA, but what is the difference between them both? Let’s have a look:

Thinking of using a Junior ISA?

If a Junior ISA is something you’re thinking about for your own child, or you’re 16 yourself and want to put some money away, we provide our very own Stocks and Shares Junior ISA*. 

If your child has just turned 18, their Junior ISA has just matured, and you’re both looking for options for the next part of their financial life, there are more ISA types that they have access to now, such as the Lifetime ISA and Stocks and Shares Flexible ISA that we offer here at Unity Mutual, which could be useful for you to look into together.

Of course, with all of these topics, make sure to do your own research, and make a choice that reflects your specific situation and circumstances. That said, the Junior ISA is a good opportunity to give your child a meaningful financial foundation by the time they turn 18.

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