The importance of saving for your child’s future

In an ever increasingly uncertain financial climate, parents have every right to worry about what opportunities their children will be limited to once they reach adulthood because of their finances.

With ever increasing and expensive university fee’s and also the expected rise in house prices, this can put an enormous amount of pressure on the bank of Mum and Dad.
By saving for your child’s future from an early stage with a Child ISA can help provide them with a lump sum of money to help with the cost of further education or can even help go towards a deposit for their first home. It could even pay for their wedding or buy their first car.

With a Child ISA account, any interest earned is completely free of income tax and the funds are locked away until the child reaches 18 years of age.
Grandparents, family members and even friends can contribute towards the Child’s Junior ISA but the yearly total investment must not exceed £3000. There are two types of Child ISA accounts: A Cash Child ISA which is a cash savings account and is very similar to a normal savings account. The stocks and shares child ISA is an investment based account which hold investments.

Every child who is eligible to open a Childrens ISA account can hold both a Cash and a Stocks and Shares account at the same time.