Seventy per cent of contributions made to the 1.3 million junior ISAs (JISAs) held in the UK are towards those owned by children aged between five and 14 years old, AJ Bell has revealed.

The platform said that parents across the country are using these products to build "decent nest eggs" for their children, with the latest figures showing that this age range is a "crucial period" when families feel the need to save for their child’s future.

Data from a recent freedom of information request revealed that just 7% of contributions towards JISAs are for those under five years old, while almost half of all JISA contributions are under £500.

Furthermore, just over 55,000 school-age children, aged five to 18, received the full JISA contribution of £9,000, which is the annual allowance.

Director of personal finance at AJ Bell, Laura Suter, stated: "For many parents, this stage brings some financial breathing space: the costly early childcare years may be behind them, and there’s still a decade or more before age 18 for investments to grow.

"It’s particularly encouraging to see that while many parents start with modest amounts, with over half of all contributions under £500, a significant number are making the most of the generous £9,000 annual Junior ISA allowance.

"Even small, regular contributions can snowball over time. Our figures show that putting away £500 a year from birth could grow to almost £15,000 by age 18, assuming 5% annual returns. And even if you start later, when your child is 10-years-old, putting away £500 a year can equate to just over £5,000 when they hit their 18th birthday. The key thing is that it’s never too early, or too late, to start. Whether you’re able to save a little or a lot, taking that first step can make a lasting difference to your child’s financial head start in life."

While AJ Bell said these products can contribute to a child’s future, the data has shown that there is a drop off in contributions as the children get older.

The platform revealed that accounts belonging to 15 to 18 year olds account for just 15% of JISA contributions.

AJ Bell stated that this may be due to parents saving money for other expenses, such as driving lessons, university or a first car.

Suter concluded: "Some parents may also take the view that once the child reaches 16 they effectively hand it over to them – young adults can manage their own Junior ISA at 16 but can’t make a withdrawal till 18.

"It’s still worth investing for older children if you can though. Even starting at the age of 15 and putting away £500 a year can mean you hand your child a savings pot worth £1,655 when they turn 18, assuming 5% investment growth a year.

"Some parents may be concerned about their kids pillaging the savings pot when they hit 18 and take control of the money – but our recent findings show that’s not the case.

"Parents who are still contributing for these older teenagers are much more likely to pay in the full whack, with 10% of all accounts paid into for 15 to 18-year-olds getting the full £9,000 contribution. Parents are far more likely to pay in large sums for these teens than for other age groups, with these accounts making up around a quarter of all accounts receiving £6,500 or more."

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