Junior ISAs Launched 15 Years Ago Now Hold Enough for House Deposits for Two in Five Savers

Two out of five children whose families opened Junior Individual Savings Accounts (ISAs) when the product launched 15 years ago now possess enough saved to cover a house deposit, according to new research.

Further analysis reveals that one in six of these long-standing accounts have accumulated sufficient funds for three years of university education, while one in ten now hold over £100,000. Fidelity International, an investment manager, conducted this analysis based on its customer data.

Junior ISAs allow tax-free savings of up to £9,000 annually. While a child can manage the account from age 16, withdrawals are not permitted until they turn 18. Only a parent or legal guardian can open and manage a Junior ISA on behalf of a child, though grandparents and other family members can contribute to an established account. The annual allowance can be divided between a cash ISA and a stocks and shares ISA.

Fidelity examined 1,700 Junior ISAs that were opened in the product's inaugural tax year (2011-12) and remain active on its platform. The findings indicated that 42% of these accounts now hold at least £27,000, an amount sufficient for a 10% deposit on the average UK house price, which was reported as £273,000 in the year to August 2026.

Additionally, 50% of these accounts have at least £20,600, potentially enough for a wedding, and 15% hold at least £65,800, which could cover three years of university tuition. A total of 22% of these long-held accounts are valued at £50,000 or more, with 9% exceeding £100,000.

"A Junior ISA won't solve all the financial challenges facing young people, but these figures show what a difference it can make to have a pot of money waiting when they reach adulthood," said Jemma Slingo, pensions and investment specialist at Fidelity International. "These are meaningful sums that could give young adults more choices at a time when many parents worry about their children's financial futures."

Research from AJ Bell earlier this year found that approximately one in 20 young savers withdraws the entire balance of their Junior ISA upon reaching age 18. Some parents reportedly keep their children unaware of the savings until they turn 18, citing concerns about financial maturity or immediate spending.

Conversely, other families use the Junior ISA as an opportunity to educate their children about financial management and investment principles. Fidelity's data also shows that among parents saving for their children, 43% opt for cash Junior ISAs, while 20% choose stocks and shares Junior ISAs. Stocks and shares ISAs generally offer higher potential returns over the long term.

Fidelity suggests that investing £84 per month from birth could result in a fund of over £27,000 by a child's 18th birthday, assuming a 5% annual investment growth rate less a 0.75% annual management charge, before accounting for inflation. Increasing monthly contributions to £203 could lead to a pot of nearly £66,000, with investment growth accounting for a significant portion of the total.

A summer survey by Fidelity of 1,000 parents with children under 18 indicated that 56% believe their children will face greater financial challenges than they did, and 59% feel pressure to support their children into adulthood. Concerns about the cost of living (62%), house prices (39%), and job security (37%) were also cited by parents. Only 25% expect their youngest child to be financially independent by age 21, with 28% anticipating this will not occur until at least age 26, or potentially never.