Junior ISAs available from November
The government has announced the start date for its new tax-free savings account for children.
The Junior ISA offers investments of up to £3,000 in cash or stocks and shares each year, with all the returns being tax-free, just like in the grown up version.
The funds generated will belong to the child, although the money will be locked in until they reach adulthood, when the account will automatically become an adult ISA.
As the accounts will not be available until 1st November 2011, the Treasury will backdate eligibility to the Child Trust Fund end date to ensure that no child born in the interim period misses out.
However, unlike for Child Trust Funds, there will be no government contribution to Junior ISAs.
