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.
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.