Junior ISA limit expected to rise - Savings - News - Moneyfacts

News

Junior ISA limit expected to rise

Junior ISA limit expected to rise

Category: Savings

Updated: 20/07/2011
First Published: 20/07/2011

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 It is now over 6 months old so the content may be out of date.

The limit on the amount that can be paid into the Junior ISA is set to be raised to £3,600, it has been reported.

Next week the Government is expected to confirm a 20% rise in the amount that will be allowed to be saved into the accounts introduced to replace the scrapped Child Trust Fund (CTF).

Initial indications were that £3,000 would be allowed to be sheltered tax-free in Junior ISAs.

However, it has now been suggested that Mark Hoban, Financial Secretary to the Treasury, will shortly announce a change in the limit to £3,600.

Junior ISA accounts will become available from 1 November this year.

All children who do not have a CTF will be eligible for the accounts, which are expected to be offered by all high-street banks, building societies and other providers that offer standard ISAs.

Children will be able to have one cash and one stocks and shares Junior ISA at any time, as long as the combined annual contribution doesn't outstrip the contribution limit.

The reports suggest that from November, the annual limit for those children who have already been given a CTF will also rise to £3,600, aligning the limits for Junior ISAs and CTFs.

Funds saved in a Junior ISA will be locked in until the child reaches 18, at which point the account will become an adult ISA.

Find the best savings rates for you - Compare savings accounts

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 Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close