The government’s new tax free account for children, the junior ISA, goes on sale on November 1st.
How will the Junior ISA work, how much can you save and who can have one? Here's a guide.
Updated November 1st
From November 1st children who don’t already have a child trust fund will be able to open a junior ISA. The junior ISA is the government’s new tax-free savings plan which is replacing the child trust fund (abolished by the government in January). The principles are similar to child trust funds, in that parents, relatives and friends will be able to pay in up to £3,600 a year between them, money can’t be accessed by the child until they reach 18, and when the account is cashed in, there’s no tax to pay.
If you have money in a child trust fund, should you transfer it to get a better return?
If you have a child trust fund, which cash and stakeholder accounts have performed the best?
The government abolished child trust funds at the beginning of the year but there’s still millions of pounds invested in them. From November children who don’t have a child trust fund will be able to open a junior ISA, but – under the current rules – parents won’t be able to transfer money from existing child trust funds into a junior ISA. However, you can switch between different child trust funds, so, which have performed the best and how much would you have made?
If you want to open up a savings account for your child, which children’s savings accounts pay the best rates?
While some providers pay more than 3%, the rates on offer on children’s savings accounts vary widely.
Updated 29th October 2011
Getting your children into the savings habit at a young age is a great idea, and - as I write this - it's possible to get 6% in interest if you're happy to tie your child's money up for a year. While several instant access accounts pay 3% or more, you can also get as little as 0.4%. Here’s a roundup of some accounts paying a child-friendly rate of interest.
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