You want to save for your child's future and you want to know that they will be taken care of and be given the best to succeed as they grow up. But you're not quite sure how or where. With trust funds for kids being cancelled and different news stories arising about missing funds, you can be confused about where to start.
In recent news there has been talk of a Junior ISA.
What is a Junior ISA?
As the initials imply, it is an individual savings account for children and a simple and transparent way to save for your child's future education and needs. It will help you to save financial aid for them for when they reach adulthood. And who doesn't want that for their child?
Some information included in the article mentioned above is that:
• Children that don't have a trust fund and that live in the UK are eligible to have one
• There is a total annual limit of £3,600 for all payments into the account
• The money will belong to your child until they reach 18 years of age and they won't be able to withdraw from it until then
• There are no taxes charged on interest rates for you or your child
• Anyone with an interest in your child's future can deposit money there, as long as it doesn't exceed the annual limit
• Tax Free Junior ISA's are covered by the FSCS which ensure that your investment is safe.
Different news articles talk about the two kinds of Junior ISA that exist: cash Junior Isa or an Investment Junior ISA. Your child can hold one of each account with different providers, but keep in mind that the combined investment allowance between the two accounts must remain at £3,600 per tax year.
It's worth looking into and considering for your child's future.