NS&I - Junior ISAs

The government is launching a new tax-free savings plan, Junior ISAs, on 1 November 2011. This will replace the Child Trust Fund (CTF) as a way to build up a lump sum for when the child reaches 18. The new plan will be backdated to January 2011 to ensure that children who were born too late to be eligible for a CTF do not miss out on tax-free savings.

Are Junior ISAs right for you?

Yes, they may be right if you:

• want a tax-efficient way for your child to save up a lump sum

• have a child, who's a UK resident, without a CTF and want to invest up to £3,600 each year

• can leave the money invested until the child reaches 18

• would like the potential to invest in stocks and shares as well as cash

No, they may not be right if you:

• have a child who has a Child Trust Fund

• have a child who is not a UK resident

• think the child may need access to the money before they are 18