All About Junior ISAs
Junior ISAs or Junior Individual Savings Accounts are an excellent way for parents, grandparents, elder siblings, or friends of the family to help create financial backing for a young child. They are accounts to which funds are placed for saving until the individual turns 18. At such a time the beneficiary will be allowed to withdraw the funds and use them for his or her education. They can be a great gift to a young person who is seeking to expand his or her education to the fullest capacity. The best thing about Junior ISAs is that once funds are placed into the account, they remain tax free for an entire year.
Anyone can add to the Junior ISA fund as long as the deposit amounts do not exceed the annual allowance which will be £3000 per year starting in November. They can be made available to any child who was born on or after January 3, 2011 or who was under 18 in September of 2002.
The government will not provide any additional funds for the Junior ISA. However, it is a great savings method for interested parties to put funds into knowing that they will be safe and secure until a time comes when they are needed.
