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.
Looking for the best ISA for your child - Compare Junior ISA rates
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.