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The government has announced that the annual limit of the new Junior ISA will be £3,600 as opposed to the £3,000 previously announced.
Junior Individual Savings Accounts (JISAs) are the replacement for Child Trust Funds and are available from 1st November 2011. Child Trust Funds (CTFs) were closed to children born on or after 3 January 2011. Unlike CTFs, the new Junior ISAs will not benefit from any government contributions. As with CTFs funds put into a Junior ISA will not be accessible until the child is 18.
However, in line with previous proposals, Current Child Trust Fund (CTF) holders will still not be allowed to apply for a JISA but the CTF investment limit will be increased from the current £1,200 to £3,600.
Junior ISAs will be available to any child under 18 resident in the UK born on or after 3 January 2011 or born before September 2002, which was when eligibility for CTFs started.
For more information on Junior ISAs see my article Junior ISAs – the facts.
