Junior ISAs Opened 15 Years Ago Now Fund House Deposits For Two in Five

Two out of five children who had Junior Individual Savings Accounts (ISAs) opened for them when the scheme launched 15 years ago now possess sufficient funds for a house deposit, according to new analysis by Fidelity International. The investment manager's customer data reveals that an additional one in six accounts have accumulated enough to cover three years of university tuition, while one in ten have reached or exceeded £100,000.

Junior ISAs allow individuals to save up to £9,000 annually in a tax-free environment. While a child can manage the account from age 16, withdrawals are not permitted until they turn 18. Parents or guardians are responsible for opening and managing the account, though grandparents and other family members can contribute after its establishment. The annual allowance can be divided between a cash ISA and a stocks and shares ISA.

Fidelity International analyzed 1,700 Junior ISAs opened during the 2011-12 tax year that remain active on its platform. The findings indicate that 42% of these accounts now hold at least £27,000, which is approximately a 10% deposit on the average UK house price of £273,000 as of August 2026. Furthermore, 50% of the accounts have at least £20,600, enough for a wedding, and 15% hold over £65,800, potentially covering three years of university fees.

Among these long-term accounts, 22% are valued at £50,000 or more, and 9% have surpassed the £100,000 mark. Jemma Slingo, pensions and investment specialist at Fidelity International, commented that while a Junior ISA may not resolve all financial challenges for young people, the sums accumulated can provide significant choices upon reaching adulthood. A Fidelity survey of 1,000 parents with children under 18 found that 56% believe their children will face greater financial insecurity than they did, with 59% feeling pressure to support them into adulthood. Concerns about the cost of living, house prices, and job security were cited by 62%, 39%, and 37% of parents, respectively.

Fidelity's research also indicates that 43% of parents saving for their children 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. The firm calculates that investing £84 per month from birth, with an assumed 5% annual growth rate less a 0.75% management charge, could result in a pot exceeding £27,000 by age 18, with only about £18,000 contributed directly. Increasing monthly contributions to £203 could potentially build a fund of nearly £66,000, with investment growth accounting for the remainder.

A separate study by AJ Bell found that only about one in 20 young savers withdraw their entire Junior ISA balance upon reaching age 18. Some parents delay informing their children about the savings, fearing a lack of financial maturity or immediate spending. Conversely, others use the accounts as an opportunity to educate their children about financial management and investment principles.