A Junior ISA is hands down one of the best ways to start saving for a childs future. All of the interest accrued in these accounts is untaxed, meaning that it will have a higher return on investment than other savings options such as a bank. By learning how to manage a Junior Invidual Savings Account, it is possible to save enough money for your child to go to college, buy a car or get their own place when need be.

The first aspect worth consideration with an ISA is its limitations. The savings can not be taken out until the child is eighteen years of age. Another limitation is the amount that can be deposited each year. A total of 3,600 euros can be deposited yearly.
The power of a Junior Individual Savings account is enormous. If parents set aside the maximum amount per year, a return of 100,000 euros is expected at a 5% interest rate. This means that if a total of 64,800 is deposited over 18 years the rest of the money will come from interest.

By utilizing the power of a Junior ISA, it is possible to ensure that your child has the money for the life ahead of them.

A Junior ISA is a new savings vehicle that is launching in November of 2011 and available only to children who are not eligible for the Child Trust Fund. It is a tax free savings account for children born before September 1, 2002 and since January 1, 2011. The limit that can be invested each year is £3,600.

The account can be opened by anyone with parental responsibility and they are known as the Registered Contact. The Registered Contact will be in control of the account until the child is 16 years of age. At that time the child can either take control of the account or leave it under control of the Registered Contact until they reach 18 years of age. No withdrawals can be made from the account until the child is 18 years of age. At 18 years of age, the Junior ISA can be rolled into an Adult ISA and continue contributing to it.

Any person can contribute to the account. Although the government does not contribute, unlike the Child Trust Fund. The Junior ISA take the place of the Child Trust Funds which stopped January 2, 2011. This does not affect existing investors. You cannot transfer a Child Trust Fund into a JISA.