Digital bank Monzo has launched a new Junior Stocks & Shares ISA for children aged 0 to 16, offering a £9,000 tax-free allowance each tax year. The account is designed to help families invest towards a child’s future directly from the Monzo app.
Who can open and manage the account
Parents and legal guardians can open and manage the account, while grandparents, relatives, and friends can contribute through a shared gifting link. The funds legally belong to the child from the day the account is opened, but they remain locked until the child turns 18.
What Monzo says about the launch
Jo Phillips, General Manager of Wealth at Monzo, said: “With more than one million young customers already using Monzo, we know how important it is for families to build strong financial habits early.
“From weekly allowance top-ups to tax-free long-term investments all in one place, bringing the Junior Stocks & Shares ISA into the app takes our wealth ecosystem for families one step further.”
How the account works
The Junior ISA has a tax-free allowance of £9,000 each tax year, which resets every April. On the child’s 18th birthday, the Junior ISA automatically converts into an adult Stocks & Shares ISA, following standard identity verification.
Monzo data shows that more than one million young customers are now using the digital bank, and one in seven of these customers have multiple Savings Pots. Monzo, founded in 2015, also reported that more than 26,000 children have created a Pot named ‘Future’, while many are saving for longer-term goals including house, investment, and charity.
