Once the child reaches 18, the Junior ISA will become an ISA. As with Child Trust Funds, no withdrawals can be made until the child reaches 18, although the child can be made responsible for the account at the age of 16.
Any money the account makes will be tax free, but unlike Child Trust Funds the Government will not be making a contribution.
Junior ISA accounts will be offered by a range of banks, building societies, credit unions and stock brokers.
According to the Tax Incentivised Savings Association (TISA), Junior ISAs are likely to be equal in popularity to the Child Trust Fund. The latest survey of Child Trust Fund’s by
Commenting, Tina Weeks from Serenity said “Many clients are keen to ensure that they build up investments for their children that they can access at age 18. Junior ISA’s are a great way to do this and with family and friends able to contribute, funds can quickly build up. It’s also a great way to ensure that youngsters see the benefits of regular saving and investing for the long term”
