Junior Isas will 'promote savings culture'

Junior Isas will help promote a savings culture in households looking for the best savings interest rates, according to Family Investments.

The new tax-free savings accounts will be available to all children under 18 who do not currently hold a Child Trust Fund, a total of around six million people in the UK.

John Reeve, chief executive at the firm, said that the Junior Isa launch is a positive for all families as it will help increase the likelihood that every young person will be able to benefit from the best savings interest rates to gain a financial asset when they reach 18.

"The Junior ISA allows parents, grandparents and anyone interested in a child's future to make deposits over an eighteen year period which cannot be withdrawn. Parents value the protection that a product like this offers as there is no temptation to dip into these funds," he explained.

Parents should know that the tax-free allowance on the accounts is £3,000 per year and they will be available from November this year.

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2011-03-31 12:43:47 © Moneyextra.com