- Junior ISA holders prefer to keep investing once their accounts have matured, new AJ Bell data can reveal*
- One third (33.1%) of Junior ISA holders contributed to their adult ISAs after the accounts matured
- Around a fifth (19.0%) withdrew money from their ISAs within the first year of the account maturing
- Less than a tenth (8.9%) withdrew more than half of the value of their total ISA within a year
- Just 6.5% of Junior ISA holders emptied their entire pot within the first year of gaining control of their money
Laura Suter, director of personal finance at AJ Bell, comments:
“Parents considering investing for their children may be encouraged by new data from AJ Bell, which found that kids aren’t plundering their ISA savings as soon as they get their hands on the money. One of parents’ biggest worries when opening a Junior ISA for their child is that when their child turns 18 they get control of the account, and can do what they want with it – including spending it all. But it’s actually far more common for young investors to continue to contribute to their ISA than blow their Junior ISA savings.
“We looked at what people did in the first year of getting their hands on their Junior ISA money and found a third have continued to top up their ISAs, looking at accounts that have matured since 2023. This compared with fewer than one in ten who withdrew more than half of their savings pot within a year of taking control of it. Any parent worried that their child might cash in the whole thing in the first year of having control of their ISA can also rest assured that this only happened with 6.5% of accounts in the past two years.
“Of course, these figures look at the more extreme scenarios – many 18-year-olds are far more likely to adopt a combined approach, perhaps withdrawing some money to fund travel, further education or other spending plans, but keeping the rest invested for the future. Junior ISAs are one of the best tools for parents hoping to set their children up for later life through long-term investing, but the prospect of gifting children a large sum of money when they turn 18 can be daunting.
“This data proves that these concerns shouldn’t deter parents and grandparents from sticking a bit of money aside for their kids or grandkids. Even investing a small amount regularly, or a one-off modest lump sum when the child is young, could see that money flourish over the years. Putting away £500 a year for a child from birth could see them turn 18 with a portfolio worth almost £15,000, based on a 5% annual investment return including charges. Likewise, if you made one lump sum investment in a Junior ISA worth £1,000 for a child when they are born it could more than double in 18 years.
“The key thing for parents thinking of investing for their children to remember is that the sooner they start, the better, even if they can only afford a small amount of money. Grandparents, friends and family could also get involved and send money to a child’s Junior ISA up to the £9,000 annual allowance, meaning it doesn’t have to be seen as a solo project for parents.”
*Source: AJ Bell. Customer data for calendar years 2023, 2024 and 2025 (as at 26 January 2026). Note that 2025 matured accounts will not have reached the one year milestone on some occasions. Averages based on mean percentage across all three calendar years. Emptied accounts included are those where holder withdraws 95% or more of their ISA balance, as market movements make it an effective proxy for emptying the account fully.
