From the 1st November 2011 it will be possible for families to save specifically with their children's financial future in mind. Children who could benefit from the Junior ISA may not already hold a Child Trust Fund and must be under the age of 18.
All ISAs benefit from tax free growth so there is no further tax to pay on any future income or the capital gain (although this may be subject to change in the future)
Junior ISAs are available from St James Place Partnership to ensure the money is locked away and invested until the child reaches 18 years of age, at which point the Junior ISA is rolled over into a standard ISA. The child beneficiary can with draw money at any time after their 18th birthday.
So for parents with younger children this allows them to build up a lump sum that could go some way to contributing to their higher education costs. At today's rate of growth it's anticipated a 3 year old will need over £50,000 to complete a university education in 18 years time, so forward financial planning, co-ordinated by families could amass to a tidy amount and save tough decisions.
Annual contributions to the fund may total up to £3,600, (from parents, family members and friends) and can be made as a regular direct debit or as a lump sum investment when ever you wish. The minimum initial investment into the St James Place Junior ISA is £150 per month or a £1,500 lump sum.
All your questions and queries relating to this new savings account for youngsters could be answered during a no obligation meeting with Jo Gliddon, the St James Partner based in Barnstaple and with clients across North Devon. Read her reviews here and call her on 01271 308090.
Please mention The Best of Barnstaple when contacting Jo Gliddon Wealth Management Group is authorised and regulated by the Financial Services Authority