Cash Junior ISA Advantages

Cash Junior ISA advantages

Cash Junior ISA advantages

  • Opportunity to save money for your child, tax free. Like the child trust fund, parents and grandparents will be able to save money into the Junior ISA, up to an annual limit, yet to be announced (Child Trust Funds were £1200 a year)
  • The Cash Junior ISA represents a near risk free manner of saving. Because the money is kept as cash, it will not be invested, meaning it can’t reduce in value. The only risk comes from the provider going bust, although there are insurance policies in place to protect your money in many places.
  • The money is invested until the child’s 18th birthday, meaning it’s a long term investment. Interest rates tend to be higher for longer term investments than shorter term, meaning you should get a better interest rate from the Junior ISA, than you would from a regular savings account.
  • Over a period of 18 years, you will inevitably witness a fair scale of interest rates, and varying stock market conditions. The Cash Junior ISA will benefit from high interest rates, and is protected from stock market crashes, because of the nature of the way your money is held.