Treasury outlines Junior ISA plans
The Financial Secretary to the Treasury, Mark Hoban MP, has today published regulations outlining the new children's savings accounts, know as Junior ISAs.
Around six million UK children will qualify for the savings accounts when they become available and almost one million more will become eligible in 2012.
Junior ISAs will be available from the November 1st 2011 and children will be entitled to one cash and one stocks and shares Junior ISA at any time, with an overall annual contribution capped at £3,000.
The government will align the current Child Trust Fund limit of £1,200 with this so that current CTF holders will also stand to gain.
Junior savings accounts will be available from high street banks, building societies, and standard ISA-providing banks.
Like a trust fund, money will be locked in the account until the child is 18, at which point the account will switch to an adult ISA.
Announcing the details of the ISAs, Mark Hoban said: "Junior ISAs are a great example of a simple, clear and jargon-free financial product that allows families to save and invest for their child’s future. They allow parents and family friends to contribute to children’s savings and will strengthen the savings culture."
Find out more: Alternatives to Child Trust Funds.
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