The main difference between the two accounts is that the Junior Cash ISA is a tax-free savings account and is used as a longer-term saving option. Each year, you can save from £1 up to the annual statutory Junior Cash ISA limit. No withdrawals are allowed, and the account cannot be closed until the child reaches 18 (although transfer to another Junior Cash ISA provider is allowed, after a 45 day notice period or subject to the loss of 45 days’ interest on the total amount transferred).
The Junior Saver is an easy access account, with a maximum balance of £25,000. Up to 12 withdrawals can be made without notice or access charge per year. This account is not tax-free.
Depending on how much access you would like to your children’s savings account will determine the type of account you choose.
Your savings are in safe hands, protected up to a total of £85,000 by the Financial Services Compensation Scheme. This limit is applied to the total of any deposits you have with the following: Family Building Society and National Counties Building Society. Any total deposits you hold above the limit between these brands are unlikely to be covered.
Learn more about the FSCS.