Lloyds TSB launches Junior Cash ISA at 3%
Wednesday, 08 February 2012 08:35
Lloyds TSB is set to unveil a Junior Cash ISA product next week, making it the first of the major high street banks to do so.
Available from February 13, the account will be offered at a tax free flat rate of three per cent AER.
The Junior ISA is a long-term savings product, which locks away savings until the child turns 18.
During this time, parents can use their Junior ISA allowances, currently set at £3,600, to build up a tax free savings pot for their child.
When the child reaches the age of 18 the account will mature into an Adult Cash ISA, where they can continue to save without paying tax on their existing balance.
Parents looking to make the most of the annual limits have until April 5 to invest for this tax year.
All children born after January 2, 2011 are eligible for a Junior ISA and the minimum amount required to open an account is £1.
Deposits can be made by anyone and are treated as a gift to the child, so cannot be returned to the donor, the bank said.
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