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.