BSA: Higher Junior ISA limit good news for children
The Government’s announcement today that the Junior ISA annual subscription limit will be £3,600, instead of £3,000, is good news for children, says the BSA. The launch of the Junior ISA in November 2011 will go some way to replacing the Child Trust Fund.
Commenting, Brian Morris, BSA Head of Savings Policy, said:
“The introduction of the Junior ISA provides a new option for parents to contribute to their child’s future and give them a financial head-start in life. The annual subscription limit is three times greater than the current limit on the Child Trust Fund, so family members and friends will be able contribute more tax-exempt savings for a child than they are able to currently.
“The Junior ISA will plug some of the gap left by the Coalition’s abolition of the Child Trust Fund and the higher subscription limit is good news.
“Mutuals are well placed to offer the Junior ISA, given their expertise in children’s savings, being the market leaders for cash-based Child Trust Funds and having a significant share of the cash ISA market.
“With simpler reporting requirements than the Child Trust Fund, transfers allowed in both directions between cash and stocks and shares accounts, and no requirement to offer a stakeholder product, the Junior ISA is a welcome addition to the savings market.”
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Notes to Editors
A copy of HM Treasury's announcement on the Junior ISA can be viewed here http://www.hm-treasury.gov.uk/fin_draft_reg_jr_isa.htm
The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 48 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for about 35% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
Photographs of Brian Morris are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
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Rachel Wylie (née Le Brocq)
Press and Public Affairs Manager
The Building Societies Association
6th Floor, York House
23 Kingsway, London
WC2B 6UJ
Tel: 020 7520 5905
Mobile: 07773489644
Fax: 020 7240 5290
www.bsa.org.uk
Twitter – @BSABuildingSocs
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