Two in five Junior Isas opened at launch now contain enough cash for a house deposit

Two out of five children whose families opened Junior Isas when they launched 15 years ago can now afford a decent house deposit, new research reveals.Another one in six have enough to fund three years of university, while one in ten already have a pot worth £100,000 or more, according to customer analysis by investment manager Fidelity International.You can save up to £9,000 a year tax-free in a Junior Isa. The child can take control of the account when they are 16 but cannot make a withdrawal until they are 18.Only a parent or guardian can open and manage a Junior Isa on behalf of a child, but grandparents and other family members and friends can pay in once an account is set up.The annual allowance can be split between a cash and a shares Isa each year.Fidelity analysed 1,700 Junior Isas opened during the product's first tax year in 2011-12 which are still active on its platform, and found 42 per cent now hold at least £27,000. Junior Isas: Many children could end up with enough for a house deposit if they are saved into for the long termThe most recent official figures showed average UK house prices were £273,000 in the year to August 2026, so the young Junior Isa holders already have enough for a 10 per cent deposit.Some 50 per cent have at least £20,600 in their Isa, which would pay for a wedding, and 15 per cent hold at least £65,800, which would cover the cost of three years at university.Meanwhile, 22 per cent of these long-held accounts are worth at least £50,000 and 9 per cent have reached six figures or more.'A Junior Isa won't solve all the financial challenges facing young people, but these figures show what a difference it can make to have a pot of money waiting when they reach adulthood,' says Jemma Slingo, pensions and investment specialist at Fidelity International.'These are meaningful sums that could give young adults more choices at a time when many parents worry about their children's financial futures.'A study by AJ Bell earlier this year found only around one in 20 young savers empty their Junior Isas when they gain full control over the fund at age 18.Other research has shown some parents saving into Junior Isas keep their children in the dark about their windfall until they are 18, fearing they are not financially mature enough to know, or will spend all the money immediately they get access to it.However, others engage children in decisions about their Isa and use it as a chance to teach them about money in general or about how to invest.Meanwhile, Fidelity research found that among parents saving for their children, 43 per cent use cash Junior Isas, while 20 per cent open stocks and shares Junior Isas.However, the latter usually offers better potential returns if you plan to hold them from birth until your child reaches adulthood.Fidelity says investing £84 a month from birth would mean contributing just over £18,000 by a child's 18th birthday, but with investment growth, that pot could reach more than £27,000.Increasing monthly contributions to £203 could build a pot of almost £66,000, though parents or other family members would pay in less than £44,000 themselves with the rest accounted for by investment growth.That assumes 5 per cent investment growth rate per annum, less a 0.75 per cent annual management charge, but does not take account of inflation which reduces buying power.A Fidelity survey of 1,000 parents of children under the age of 18 this summer found 56 per cent believe their children will find it harder to become financially secure than they did, and 59 per cent feel pressure to support them into adulthood.Some 62 per cent were concerned about the cost of living, 39 per cent about house prices and 37 per cent about job security.And just 25 per cent expect their youngest child to become financially independent by age 21, while 28 per cent say this won't happen until at least age 26, or potentially ever.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate 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.Compare the best investing account for you