Junior ISA - a gift that's not just for Christmas

With Christmas just weeks away and further details of the Government's newly announced Junior ISA scheme expected in the spring, providing for children will be foremost in many parents' minds. A one-off lump sum investment of £100 in the average investment company could grow to just over £650 over 18 years, and the same amount invested every year for 18 years could grow to a substantial £4,072, more than twice the cash value and far outweighing the benefits of this year's must have toy or computer game.

Ian Overgage, Acting Communications Director of the Association of Investment Companies (AIC) said, "The increasing burden of university and housing costs mean that children today will benefit more than ever from a helping hand from their relatives. However, it may not be so easy to convince them of this on Christmas day!

"Investing in an investment company or children's saving scheme could make gaining a degree or buying a new house a more affordable goal. The substantial long term benefits of investment companies make them ideal for this kind of investment and there are a diverse range of sectors and risk profiles to meet investors' needs. Schemes are available from as little as a £50 lump sum or £25 a month investment and they can be an excellent way of making the most of Christmas gifts from friends or family."

To help those considering making an investment on a child's behalf, the AIC has compiled details of children's savings schemes. Further information can be found in the AIC factsheet: Investing for Children, which can be viewed at theaic.co.uk.