Monzo, a prominent UK digital bank, has rolled out a Junior Stocks & Shares ISA that lets families put money aside for a child’s future through its app.

The product is set up and run by a parent or legal guardian, known as the Registered Contact, who makes the investment choices and handles transfers. Grandparents, other relatives and family friends can also add money using a shared gifting link. This lets birthday gifts, holiday money and regular top-ups all go into a single pot. The gifting link feature will reach customers gradually over the coming weeks.

Up to £9,000 can go into a child’s Junior ISAs tax-free in each tax year. Account holders can pick from Monzo’s selection of investments and switch between them whenever they like. Monzo charges no platform fees, though customers still pay a fund management charge that depends on the investment selected.

The account is open to children aged between 0 and 16. The money belongs to the child from the outset and can’t be accessed until they reach 18. Under standard circumstances, parents can’t make early withdrawals. Children aged 16 and 17 won’t be able to manage the account at launch. When the child turns 18, the account becomes an adult Stocks & Shares ISA automatically, once identity checks are completed. Cash transfers in and out are handled through Seccl.

The launch is backed by Monzo data on the saving habits of its more than one million young customers. Around one in seven young savers keep more than one Savings Pot, and 55% label their Pots with specific goals.

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