Junior ISAs praised by Building Societies Association

Junior ISAs have been praised by the Building Societies Association BSA which called them a welcome addition to the savings market.

Brian Morris, the association's head of savings, said that he expects many of its members to offer the savings option.

"Although minus the government contribution, Junior ISAs are an attractive option for parents. The flexibility to transfer money in both directions between cash, and stocks and shares accounts, is welcome. This is not the case for adult ISAs and we'd urge the chancellor to address this inconsistency in his Autumn Statement," Mr Morris added.

Junior ISAs will be introduced to the market next month as a replacement for child trust funds, with many thinking they will offer the best savings rates for young savers.

Parents will be able to save up to £3,600 a year in the accounts.

Tom Stevenson, investment director at Fidelity Worldwide Investments, recently said that Junior ISAs represent a great opportunity for long-term saving.
 

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2011-10-27 12:54:08 © Moneyextra.com