The junior Isa that comes with two hours of free childcare: Oaknorth launches 3.5% deal with a twist

Updated: 02:00 EDT, 5 October 2026 Products featured in this article are independently selected by This is Money's specialist journalists. If you open an account using links which have an asterisk, This is Money will earn an affiliate commission. We do not allow this to affect our editorial independence.The digital challenger bank Oaknorth has launched its first junior Isa at a rate of 3.5 per cent - and it comes with a highly unusual twist.As an extra incentive for parents to open an account, the savings provider is giving them two hours of free babysitting through the childcare app Bubble.Parents and legal guardians can open a Junior Isa (Jisa) for a child and save up to £9,000 annually into the tax-free account. Oaknorth only asks for a minimum deposit of £1 to get started.But anyone can contribute after the account's set up, including grandparents and other family members.The Jisa joins adult easy-access and fixed-rate cash Isas available from the bank.Its fixed-rate cash Isas are currently being offered at top rates, with 4.91 per cent available on its one-year fix and 5.02 per cent available on its two-year fix. Future nest egg: A junior Isa is a good way to teach children about saving moneyIs it worth signing up for Oaknorth's junior Isa?Saving into a junior Isa is a good way to build up a nest egg for your child's future. They can manage the account when they turn 16 before getting full access to the money at 18.Oaknorth is a good option if you're happy to manage the account entirely within its app or your online account – there are no branches if you prefer to bank in person.The bank accepts transfers in from other providers, so if your child has a junior Isa elsewhere languishing at a lower rate this is worth considering.It's positive that parents can open the account with as little as £1 but keep in mind that the interest rate of 3.5 per cent is lower than options from other providers.Leek Building Society is offering a junior Isa at 3.85 per cent, while Skipton Building Society is paying 3.8 per cent.What other options do you havesaving for a child?The nature of junior Isas means it's likely that the account will be open for a long time before your child can access it – potentially 18 years if set up at birth.A long time horizon like this means it's worth thinking about investing for your child within a Jisa rather than saving the money in cash.It's important to keep the money invested for at least five years so it can ride out the highs and the lows of the stock market, and this should be achievable if you're opening a Jisa for a young child.Over the long term, investing stands a better chance of beating inflation – the rate at which prices rise over time – than cash.This means your child could potentially get more value from their money when they reach 18.Many investment platforms offer junior Isas, including the UK's most well-known options – AJ Bell*, Hargreaves Lansdown* and Interactive Investor*.We have a guide on how to start investing if you've never considered it before, running through how to pick the right platform and the key concepts to understand.SAVE MONEY, MAKE MONEYUp to £250 cashbackUp to £250 cashback2.5% cashback when investing at least £2005.01% cash Isa5.01% cash IsaTrading 212: 1.41% fixed 12-month bonus£2,500 cashback£2,500 cashback£250-£2,500 cashback when opening SippUp to £150 cashbackUp to £150 cashbackOpen a savings account with at least £5,000Welcome bonusWelcome bonusGet up to £200 when you invest £100Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. Terms and conditions apply on all offers.