Junior Isa scheme announced in Budget

Parents looking for the best savings interest rates to set aside money for their children will be pleased to hear about changes announced in yesterday's March 23rd Budget.

The chancellor George Osborne said that all children under the age of 18 will soon be eligible for a Junior Isa, providing they do not already have a Child Trust Fund.

Junior Isas are expected to be available from autumn but the chancellor said he will provide more details later in the week.

He said that he will be working with charities and other organisations to ensure that children in care are supported through the use of the tax-free accounts.

The Tax Incentivised Savings Association TISA welcomed the introduction of a the Junior Isas and told those looking for the best savings interest rates that the move was "extremely encouraging".

However, TISA added that the decision to base inflation-related increases in Isa rates on CBI rather that RPI was "disappointing".

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2011-03-24 12:57:25 © Moneyextra.com