The Government has this week confirmed a new junior ISA scheme.
The junior ISAs will be available from 1 November this year and each child will be allowed to have one cash and one stocks and shares ISA at any one time. The overall annual contribution limit will be £3,000.
These junior ISAs will be on offer from high street banks, building societies and other providers that currently offer ISA savings accounts. Funds from the savings accounts will not be able to be withdrawn until the child reaches 18, at which point the ISA will automatically become an adult account.
Financial secretary to the treasury Mark Hoban MP has now published draft regulations on the new ISAs. The Government estimates that six million children will benefit from the savings accounts when they launch and 800,000 more children will become eligible every year.
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. I look forward to seeing these on the high street in a few months' time.”
