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Low demand for Junior ISAs

Low demand for Junior ISAs

Category: ISAs

Updated: 01/08/2012
First Published: 01/08/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Junior ISAs were launched last November amid a surge of publicity.

Replacing the Government backed Child Trust Fund (CTF), the tax-free accounts offered millions of parents an alternative to save for their children's future and in turn encourage their little ones to save.

Despite a grand launch, interest in the accounts has sadly been subdued. Just 72,000 Junior ISAs were opened within the first five months of them being launched, much lower than the 1.2 million anticipated by the Government. Total funds invested in the accounts was £116 million.

The low demand is thought to be due to the current economic climate, where many parents are struggling financially and are unable to place money in savings accounts for themselves or their children.

Unlike CTFs, whereby the Government allocated each child £250 when they were born, Junior ISAs require parents to open and make deposits on behalf of their children.

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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