Child Trust Funds vs Junior ISA - what’s the difference?

Child Trust Funds vs Junior ISA - what’s the difference?

April 25, 2022

We've summed up everything you need to know about the difference between a Child Trust Fund and a Junior ISA.

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Video transcript

Did you know that the UK used to give £250 to every child when they were born? And another £250 when they turned seven years old?

Yeah, I know it sounds crazy. The money used to sit inside something called a Child Trust Fund, and the parent could add more money to it, invest it and just leave it.

And that would grow until the kid turned 18. But they did replace it with something called a Junior Isa.

Apart from the free money from the Government. It works in a very similar way. Parents can add money to it.

They can save it, or they can invest it.

And when the kid turns 18, they can spend it on their uni fees, their first home deposit. They can even continue investing in it if they want to.

Best of all, it’s tax-free. That means your kid has to pay no tax when they sell their investments when they’re older.

So why not check out a Junior Isa for your kid? And if you’ve got any questions, just ask drop us a message in the app or an email to

Money at risk when investing. Remember the value of your investments can go up as well as down and past performance is never a guarantee of future performance.

Nosso does not give financial advice and the numbers used are to provide a helpful illustration.