Junior ISAs launched today, but beware if your children have a Child Trust Fund

The long awaited Junior ISA (Individual Savings Account) is launched today. The Junior ISA will replace the Child Trust Fund, which was introduced by the last government, and was aimed at producing a lump sum of money for children as they turned 18. Flop In many ways the Child Trust Fund was a flop with only one in five accounts being added to by parents or grandparents, leaving most accounts with just the government contributions. Child Trust Funds received a government contribution of £250 when a baby was born plus an additional payment when the child reached the age of seven. Unlike the Child Trust ...

Junior ISA limit to be raised

The savings limit on the new tax free Junior ISAs is to be set higher than previously announced. The introduction of the new Junior Individual Savings Account (JISA) was announced earlier this year. Originally the government had indicated that the maximum amount which could be saved into a JISA would be £3,000 per year, however indications are now that this is to be raised to £3,600. The JISA is designed to replace the Child Trust Fund (CTF) but would not receive government contributions as the CTF did. Like the adult ISA the new JISA will be able to invest in bank or building ...