All you want as a parent is for your child to be healthy and happy, but we all know that having a child means thinking about their future too. What will my child do for a living, how will they afford university and what will they do once I’m not at their side anymore? As soon as Amy was born, I wanted to make sure that she is well looked after and started researching different options from opening a savings accounts to taking our life insurance. In the end, we focused on something that was relatively new when Amy was born: a Junior ISA.
If your child was born before January 2011, you will probably have never heard of it and ask yourself: What is a Junior ISA? And if your child was born afterwards, then you will probably ask yourself the same questions. Names that include abbreviations are always a little scary, but Junior ISAs really aren’t. If you want to set up a Junior ISA or if you are only doing a bit of research into all the options that are available out there, I hope these 10 must-know facts will help you find out, if a Junior ISA is what you and your family are after.
A Junior ISA…
- is a government scheme in the UK encouraging parents to save for their children
- is the replacement for the former Child Trust Fund
- is eligible to children born on or after 3rd January 2011 and before September 2002
- can only be opened by parents or guardian, but relatives and friends can contribute to it
- allows parents to save up to £3600 up until the 18th birthday of their child
- can come as a cash or investment ISA, which focuses on stocks and shares
- locks the money until your child’s 18th birthday and does not give you any access
- turns into a normal ISA once your child is 18 and allows them to keep the tax
- based on shares and stocks can change in value
- can be moved from one provider to another to guarantee a better return