A new development in child savings has appeared in the form of junior ISAs (as at November 2011), which are a tax efficient way for parents to invest and save money with the purpose of giving it to their children when they have grown.
These kinds of child savings accounts are not available for everyone though, and the eligibility criteria are that the child in question must either be:
- A child born on the 1st of January 2011 or at any point after that date
- Someone who is under 18 but was born before September 2002
The limit on these kinds of child savings accounts is £3,600 each tax year, which is held in the child’s name and for the most part is tax free. While parents manage the account until the child is 16, they cannot withdraw any of the money during this period.
If investing in a junior ISA deal seems like an attractive option to you see the table below: