Junior ISA Rates Reach 3.85% — Where to Find the Best Deals

Junior Cash ISAs are currently paying up to 3.85% AER — a rate that would have looked generous even a few years ago, and one that significantly outpaces the big high street banks offering as little as 2.35%.

With the annual JISA allowance sitting at £9,000 per child, getting the rate right matters. A child starting a Junior ISA at birth with £9,000 invested in year one, earning 3.85% annually, could see meaningful growth by the time they turn 18 — entirely tax-free.

The best Junior Cash ISA rates right now

At the top of the market, Leek Building Society and Beverley Building Society are both paying 3.85% AER. Neither can be opened online — both require a branch visit or postal application — but for parents willing to accept that minor inconvenience, the rate is the best available on the market.

Skipton Building Society is close behind at 3.80% AER, also branch and post only, but a well-established name with a straightforward product.

The 3.75% tier is the most competitive cluster in the market right now, with Coventry Building Society, Danske Bank, Nottingham Building Society, and Vernon Building Society all matching at this rate. Coventry and Nottingham are branch and post only, but Vernon stands out slightly at this tier — it requires a branch or postal application to open but can be managed online afterwards, which is more practical for day-to-day use. Danske Bank similarly offers online and app management, though it's only available to customers in Northern Ireland.

Stafford Building Society pays 3.76% AER but carries a higher minimum deposit of £1,000, which rules it out for parents starting small.

Family Building Society rounds off the top tier at 3.70% AER, again branch and post only.

For parents who want the simplest option, NS&I's Junior ISA pays 3.55% AER and is the only major Cash JISA that can be opened and managed entirely online. It's also backed 100% by HM Treasury rather than the FSCS, making it the most secure cash option available for a child's savings — with no upper limit on protection

What is a Junior ISA?

A Junior ISA (JISA) is a tax-free savings account for children under 18, available to any UK-resident child who doesn't already hold a Child Trust Fund. Parents or guardians open and manage the account, but the money legally belongs to the child. It cannot be touched until the child turns 18, at which point it converts to an adult ISA in their name.

The annual allowance is £9,000 per tax year, which can be split between a Cash JISA and a Stocks and Shares JISA — though only one of each type can be held at a time. Contributions can be made by anyone — grandparents, relatives, and family friends can all pay in, which makes JISAs a useful focus for birthday or Christmas gifts.

Access is locked until the child turns 18, with narrow exceptions for terminal illness or death. This is by design — the account is intended to be a long-term pot, not a flexible savings vehicle.

FSCS protection covers up to £120,000 per person per institution, which covers the vast majority of Junior ISA balances. NS&I is the exception, with full HM Treasury backing and no protection cap.

Rates correct at time of publication. Always check the provider's own site before applying as rates can change without notice.