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Will New Junior ISAs Be For All Under 16s

by Jim ONeil on May 17, 2011

in ISA's Individual Saving Accounts

This is a topic that has not as of yet been completely made clear. However, there are a few facts that we do know concerning Junior ISAs. Depending upon the child’s age, parents do, however, have several options they can pursue to create savings for their child.

The Child Trust Fund, or CTF, is only available for children born between 9.1.2002 and 12.31.2010. This leaves quite a gap for children older than nine years of age. There are rumors that a new Junior ISA will soon be made available for all children born in 2011 and after, but there is no word on ISAs for that age range that fits into neither category.

While a CTF or Junior ISA is not available, parents still have options for their children. Multiple savings accounts available offer reasonable interest rates right now. The only drawback on these accounts is that interest earned is taxable.

If the money is meant for future use, parents may want to consider creating a trust for their child that will mature when they are either 18 or 21, depending upon its purpose.

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