Posts Tagged ‘Savings’

Junior ISAs launch to help parents save for their children’s future

Posted on: November 4th, 2011 by Leighton Reed
Leighton Reed, Director, MHA Broomfield Alexander

Leighton Reed, Director, MHA Broomfield Alexander

From 1 November parents are able to open a Junior ISA account for their children at a range of high street institutions. Around six million children will immediately be eligible for a Junior ISA, with a further 800,000 children benefitting each following year.  All children under 18 who are UK residents and do not have a Child Trust Fund (CTF) will be eligible for a Junior ISA.

The limit for Junior ISAs will be set at £3,600 and to ensure that children with a CTF are not disadvantaged the CTF savings limit will treble from £1,200 to £3,600, from 1 November, aligning it with the new Junior ISA limit.

Funds in a Junior ISA will be locked-in until age 18 and roll over into an adult ISA on maturity, meaning that the accounts will help to foster a long-term savings habit among young people.

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