Families would pay into Junior Isas

The introduction of Junior Isas, which give parents the chance to earn the best savings rates tax free, has been a huge hit.

A study by JP Morgan Asset Management found that 36 per cent of parents would take out a Junior Isa for their child, while 43 per cent of people would contribute to a Junior Isa if one was opened by a relative or close friend.

Furthermore, 45 per cent of grandparents claim that they would open a Junior Isa for their grandchildren.

"It is encouraging to see that it is not just parents who would consider contributing to a Junior ISA, and that it is the wider network of family and friends and in particular grandparents who also realise the importance of saving for a child's future in a tax efficient way," said David Barron, head of Investment Trusts at JP Morgan Asset Management.

These findings may come as no surprise as former TV presenter Philippa Forrester recently claimed that older people are more careful with their money.

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2011-10-18 16:57:12 © Moneyextra.com