CHESTER, England, October 31, 2011 /PRNewswire/ --
Commenting on today's Junior ISA launch, Kevin Mountford, head of banking at MoneySupermarket said: "The Junior ISA will be a vital tool for tax efficient savers and is great news for parents and grandparents of the six million children eligible for a Junior ISA this year, and for the further 800,000 children eligible next year. However, autumn is an unusual time of year to launch Junior ISAs as providers traditionally focus on peak ISA season each spring to launch new products, so it may be some time until we see any real competition in this market.
"There has never been a more important time for parents to start planning for their child's future. With the increased cost of living and rise in university tuition fees, the earlier parents put their savings plan into action, the better start they can give to their children.
"The tax free savings limit of up to £3,600 per year for children under 18, which is £2,400 more than the previous CTF allowance, means account holders could earn over £22,000* in interest in 18 years time if they invested the maximum allowance each year, giving their child a real boost in their start of adulthood. Unlike CTFs, which Junior ISAs now replace, there will be no government contributions into each child's savings pot; however there is some good news for savers as the limit will increase from 6th April 2013 in line with increased cost of living.
"Anyone saving into a Junior ISA should be prepared to shop around for the best deal for their needs, and make sure they regularly switch to the best option in order to achieve the maximum returns when their child turns 18."
Junior ISAs available on Launch
Provider Deposit AER Nationwide BS Junior ISA GBP1 3.00% Buckinhamshire BS Junior ISA GBP10 3.00% Skipton BS Junior ISA GBP1 3.00% Bank of Cyrpus Junior ISA GBP25 2.75% Furness BS Junior ISA GBP1 2.50% Ipswich BS Junior ISA GBP10 2.40% Harpenden BS Junior ISA GBP1 2.25% Mansfield BS Junior ISA GBP1 2.00% GBP1+ 1.81% National Counties BS GBP1,000+ 2.26% Junior ISA GBP3,000+ 3.01% Bank of Cyprus Fixed Rate Junior ISA (12 months) GBP25 2.90%
Sourced by http://www.moneysupermarket.com 31.10.2011
Notes to editors:
*Investing the maximum £3,600 each year in a Junior ISA paying a rate of 3.00 per cent would earn £22,020.73 in interest over 18 years.
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