Digital bank Monzo has launched a Junior Stocks & Shares ISA, a new savings option with a £9,000 tax-free limit, available from Wednesday. The feature is designed to make it simpler for parents and legal guardians to invest directly in their child’s future, with all transactions conducted through the Monzo app.
How the Junior ISA works
Parents and legal guardians, also called a 'Registered Contact', can open and manage the account within their app, while grandparents, relatives and friends can contribute via a shared gifting link. The account boasts a £9,000 tax-free allowance, meaning families can contribute up to this amount each tax year across all Junior ISAs held by the child, allowing extended networks to work together towards a single future fund.
The Junior ISA is available for children aged 0 to 16. Funds legally belong to the child from day one and are strictly locked until the child turns 18. Monzo, founded in 2015, confirms that children aged 16 and 17 will not have account management access at launch. The Junior ISA automatically converts into an adult Stocks & Shares ISA on the child’s 18th birthday, following identity verification.
Fees and roll-out
The bank says it does not charge any platform fees, meaning more of the money stays invested for the child’s future. Customers will still pay a fund management charge, depending on which investment they choose. The ability to create a shared gifting link for the Junior Stocks will be gradually rolled out to customers over the coming weeks, Monzo confirms.
Monzo currently serves more than 16 million customers, including more than 1 million businesses. It says the launch reflects how children and teenagers are using digital tools to build good saving habits. It also boasts more than one million young customers, with one in seven young savers now having more than one Savings Pot.
Young savers' habits and expert tips
Over half (55%) give their Pots goal-based names. More than 26,000 children have a Pot called “Future”, while others are saving for longer-term goals like “House”, “Investment” and “Charity”. Some are less sure, using names such as “IDK” and “Things”.
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.”
Tips for talking to children about savings
Phillips also shared tips for talking to children about savings. She advises breaking the money taboo at the dinner table, suggesting that money shouldn't be a secret topic that kids only learn about when they get their first job. She recommends talking openly about saving, budgeting, and even how investing works early on, involving children in simple everyday chats about household budgets or showing them how their savings pots grow.
She also suggests ditching big lump sums and starting small, noting that setting up a quiet £5 or £10 automatic transfer builds real momentum in the background without squeezing weekly budgets. Finally, she highlights that the £9,000 tax-free allowance resets every April and is a strict 'use it or lose it' deal, urging families to treat the cap as a team effort, as anyone from grandparents to godparents can contribute.
