1 November sees the introduction of the Junior ISA which it is estimated could benefit six million youngsters who will be eligible for the account immediately. The attraction of the scheme is that anyone can save for a child be it a parent, grandparent, Aunt, Uncle, God-parent or friend. With the increasing cost of further education, children will be in great need of financial help in their late teens and early twenties.

Investing into a Junior ISA will be an easy way of helping to build up a fund. Investments can be made on a regular monthly payment or a once off amount.

What are the details?

Junior ISAs will replace Child Trust Funds and will launch on 1 November 2011

  • All UK resident children under the age of 18 who do not have a Child Trust Fund (CTF) will be eligible for Junior ISAs
  • Any income or gains will be tax-efficient
  • Both cash and stocks and shares Junior ISAs will be available. Children will be able to hold up to one cash and one stocks and shares Junior ISA at a time (two accounts in total)
  • There will be an overarching contribution limit of £3,600 per year which will be indexed by CPI from 6 April 2013 onwards
  • Accounts will be owned by the child and funds will be locked in until the child turns 18.
  • Junior ISA accounts will by default become adult ISAs on maturity • There will be no government contributions or matched payments into accounts
  • There will be no stakeholder Junior ISA account Getting more information At the beginning of November we will have details of the schemes which are available and will be able to give you the necessary recommendation to suit the needs of you and the child. If you want further information on a suitable scheme please contact us.