Post Office launches new Junior ISA
The Post Office has launched its Junior ISA that can be opened by parents and guardians on behalf of children under the age of 16 who didn’t qualify for a Child Trust Fund. There is no minimum age requirement. The Junior ISA offers a tax-efficient way to save for a child’s future by providing them with a financial head start when they reach the age of 18.
The Post Office Junior ISA is an investment ISA, providing customers with good potential for growth by investing mainly in stocks and shares and fixed interest investments. The maximum annual investment is £3,600, minus any contributions to a cash Junior ISA.
Customers can open the account with a regular Direct Debit from as little as £10 per month. Friends and family are able to make contributions too. Alternatively, customers can open with a lump sum of £500 or more. Once the account is open deposits can be made by anyone. Payments can be made via Direct Debit, bank transfer and cheque.
Post Office Director of Savings and Investments, Richard Norman, said: “A Junior ISA is a great way to save for a child’s future – from helping towards tuition fees, a deposit for their first car or even their first home. We know that starting the savings habit early is the key to being a successful saver, and this is a great addition to the already broad range of savings products on offer which suit customers’ varying circumstances.”
Post Office is launching an investment ISA, rather than cash ISA, because over longer terms stocks and shares investment has historically outperformed cash by a significant margin. The Junior ISA is a long term product – up to an 18 year term, depending on the age of the child when it’s opened for them, so stocks and shares offer the highest potential for growth and capital appreciation when compared to cash.
Post Office offers a range of savings products to suit different needs, and recently launched the third issue of its Inflation Linked Bond, helping savers to protect their money from the eroding effects of inflation.