Isa's for children

[tranquilitygardens]

I am sure I read somewhere about new ISA's for children coming soon.

Does anyone know anything about them?

It doesn't make sense to have them for children as they are a tax free savings account children don't pay tax on savings so they wouldn't need one, surely?

I saw something about these new ISA's for children, I really wish I had read it now.

I was thinking of starting a savings account for them to help with the massive uni fee's they are going to face, if they attend.

I have a small regular amount going into a savings account they have each, and they can access with a cash card, to teach them responsibility looking after their own money.

I would like an account they can't access yet.

I am also going to be in a position soon, fingers crossed to have a little lump sum for myself and would like to put some of that away for the children in a savings account and thought I would open up this new ISA for them for a lump sum and a small regular amount to go into it.

I agree with Faraway - the whole thing about ISAs are that they are a tax-free savings account.

Unless your children are in a position to pay tax (unlikely?) then what's the point? You'd be better off with a normal account which doesn't limit what you can invest.

However by googling the words "Children's isa" I've discovered they do indeed exist and there is a vast amount of information on the web including this Guardian article. www.guardian.co.uk/money/2010/oct/26/junior-isa-childrens-savings-account

Cash ISAs are a tax-free savings accounts but the Junior ISAs are Stocks and Shares ISAs see here for an overview. Cash deposit accounts are making 3%-ish at the moment. Stocks and Shares are riskier in financial terms, but offer the potential over the long-term (10 years +) to significantly outperform cash deposit accounts.

When looking at Junior ISAs the main point of comparison are the fees charged to administer the accounts.

Brief description from the website linked above....

Our Junior ISA will:

• Invest in Stocks and Shares.
• Be available to children under the age of 16 who were not eligible for a Child Trust Fund.
• Offer an ethical fund option.
• Include an Annual Management Charge of 1.5%.

Just so people are aware; if parents pay money into an account for children, if the income exceeds £100 per annum it is regarded as the parents income and taxed at the highest marginal rate. This is why junior ISA's have been introduced - £3600 per annum outside of this rule.
Children also have a tax allowance the same as anyone.

My children are too old for a Child Trust Fund.

Wow only a hundre pounds a year, I will look into these isa's then!

thanks

I would also check index-linked options like NSandI (not available until further notice) and PostOffice, which pay RPI+something... if you want to save for years to come , ie no problem with being locked away.