Junior ISAs explained

Junior ISAs will become available from 1st November 2011 and will hold some tax-free benefits. Junior ISAs may be a great way to plan university fees, or simply to provide your child or grandchild a good financial start to adulthood.

Parents or grandparents may be able to find a tax-free way to save for the future of their children or grandchildren.

The Junior ISA is a tax-free savings account for children. However, unlike the Child Trust Fund account (which has been closed to children born on or after 3 January 2011), the government will not make any payments into the new accounts.

You will be eligible to open a Junior ISA if the child does not already have a Child Trust Fund. Broadly, this means any child born before 1st September 2002, or after 2nd January 2011.

You will be able to save up to £3,600 per annum for the child, and your choice of investments will include cash deposits, and will also allow access to stocks and shares. A child can have both cash and stocks and shares Junior ISAs. The investment will become available to the child on attaining age 18.

Always seek advice if you are unsure on what are the most suitable options for your savings. A well structured and diversified portfolio will not only reduce the risks of exposure to one asset class, but also provide greater growth potential over the longer-term.

Should you need independent financial advice on your Junior ISA options, and live within 30 miles of Llanelli, please call Financial Solutions Wales on 01554 770022.

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