New Junior ISA launched by Post Office
Tuesday, 15 November 2011 09:37
The Post Office this week announced the launch of a new Junior ISA designed to help parents save for their children.
Available over the phone, by post or online, the new product can be opened by parents or guardians for any child under the age of 16 who did not qualify for the Child Trust Fund.
It is an investment ISA, so sums put in will be placed mostly in stocks, shares and fixed interest investments rather than cash, as this typically offers the best returns over the long term.
The Junior ISA can be opened with £500 and then maintained with direct debit, bank transfers and cheques, with anyone able to make a contribution.
Up to £3,600 can be invested per year, which should have matured into an excellent lump sum by the time the child reaches 18.
The Post Office's Richard Norman said: "We know that starting the savings habit early is the key to being a successful saver and this is a great addition to the already broad range of savings products on offer which suit customers' varying circumstances."
A new Inflation-Linked Bond was also recently lauched by the Post Office.
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