Parents and grandparents eye ‘JISA’ contributions - Savings - News - Moneyfacts


Parents and grandparents eye ‘JISA’ contributions

Parents and grandparents eye ‘JISA’ contributions

Category: Savings

Updated: 27/03/2012
First Published: 27/03/2012

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 It is now over 6 months old so the content may be out of date.

Thousands of parents and grandparents plan to pay into Junior ISAs in the coming tax year.

Junior ISAs – dubbed JISAs – have taken over from Child Trust Funds (CTFs) as the main way of saving for children, with parents, other relatives and friends able to save £3,600 a year into the accounts.

And like their adult equivalents, the Junior ISAs are not subject to tax, so no interest is lost to the taxman.

Figures from Triodos Bank show that one in eight (13%) parents plan to pay into a Junior ISA in the forthcoming tax year.

It means the young Britons stand to benefit from a potential Junior ISA nest egg of £3.7 billion, with each parent or grandparent planning to contribute an average of £1,017 this coming tax year.

The research has also cast light on how parents and grandparents would like their children to use their nest egg when they turn 18.

Nearly a fifth want their child/grandchild to maintain the tax-free savings habit, and continue saving into an ISA at 18, rather than spending the tax-free nest egg they've built up.

Over a third (34%) hope the child will use it for university, a similar number (32%) would like the money to be used for a house deposit, and 19% would like it to go towards seeing the world.

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 Any products featured may be withdrawn by their provider or changed at any time.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