Junior ISAs set for Autumn launch



Junior ISA

Junior ISA

Media coverage from this week’s budget concentrated mainly on fuel duty and an increase in personal tax allowance, but quietly mentioned was the arrival of a new children’s savings product.

The Junior ISA, which will replace the Child Trust Fund, was confirmed for an Autumn launch, and according to a Financial Times report, could have an annual investment opportunity of up to £3,000.

The Junior ISA, which will differ from the Child Trust Fund in that it will not benefit from any government contributions, will offer tax free savings for children of all ages.

As is the case with adult ISAs, the Junior version will be available in both a stocks and shares, and cash form, and will be available to all those who don’t currently have a Child Trust Fund.

Anyone under the age of 18, which accounts for around 6million children, will be able to open one if they didn’t have a Child Trust Fund, and the accounts will be managed by the child’s parents or guardians.

A draft version of the exact rules are set to be published this week, and is expected to become popular with savings and investment providers when it launches, due to the overall success of its adult counterpart.

Child Trust Funds will continue to run until the children reach their 18th birthday, so those taken out now will still be around for another 18 years.

Comments & Debate

  1. April 1, 2011 at 8:09 am ALEX LAGAREJOS Commented:

    THE BIG NEGATIVE DIFFERENCE BETWEEN THE CTF AND THE JTF IS THAT IF YOUR CHILD / GRANDCHILD HAS A CTF THEY CANNOT HAVE A JTF WHICH MEANS THAT THEY CANNOT INVEST IN SHARES AND UNIT TRUSTS.
    THE FUNDS ARE LOCKED INTO POOR INTEREST RATE RETURNS AND CANNOT TAKE ADVANTAGE OF CAPITAL GROWTH OF SHARES ETC.
    DISCRIMINATION BY ANOTHER NAME!!!!

    ALEX

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