Children’s Saving Plans

Advice on Children’s Saving Plans

A guest post

In November 2011 a new tax free way of saving for your child’s future was introduced. This enables parents and grandparents to build up tax free savings for children up to the age of 18. 

Children entitled to have a junior ISA are those who are under 18 and live in the UK. You cannot have a junior ISA if you already hold a child trust fund.

There are 2 types of Junior ISA which are as follows:

1. Cash Junior ISA 
2. Stocks & Shares Junior ISA

Your Child can have one or both of these at any time. The total amount that can be put into a junior ISA in each tax year is £3,600.

A person of parental responsibility must open one for a child under 16. That person has the responsibility for managing it. They are called the registered contact.

When your child reaches the age of 18 they can then choose to take money out of the Junior ISA or invest in a different type of account. If nothing is done then the ISA will automatically become an adult ISA.

The Money Map (Financial Navigation) can help advise anyone through this type of contract and others which may be more suitable for your circumstances as you may wish to keep more control of your capital now and in the future. The Money Map specialise in all things finance from Children’s ISAs to annuities.

The Money Map offers a free initial consultation at their expense. You can contact them here.