Parents should invest in junior ISAs before 2027 rules reduce cash allowance to £12,000.

Martin Lewis warns savers to act now on tax-free junior ISAs before upcoming rule changes in April 2027, when the cash ISA allowance drops to £12,000, requiring the remaining £8,000 to be invested. Only parents or guardians can open a junior ISA for a child, which allows up to £9,000 annually in tax-free savings. Lewis advises investing rather than holding cash to boost long-term returns, noting the account is managed by an adult until the child turns 18. Adults aged 65 and over are exempt from the new rules.