Investment - Articles - Barclays Stockbrokers comment on new Junior ISA limits

 Catherine Penney, Investment and Tax Specialist at Barclays Stockbrokers, commented:

 "Today's news that Junior ISAs will be available from 1 November this year, with an initial limit of £3,600, is a much needed encouragement to build savings from a young age.

 "Using the established ISA brand to create Junior ISAs will encourage take up, as many adults are repeat investors into ISAs and recognise the benefits of tax efficient investing. The stocks & shares Junior ISA offers access to the same wide range of investments available through adult ISAs to construct a diversified portfolio, offering the potential for good long term investment prospects, although of course the value of investments can fall as well as rise. With little expectation that interest rates will rise higher than inflation any time soon, access to investments offers the opportunity to offset the effects of inflation.

 "At a time when young people are facing rising fees to access university education or need to build significant savings to get started on the property ladder, Junior ISAs offer the opportunity for any relative or friend to contribute towards a nest egg available to the child at age 18.

 "It is crucial that people make the most of their annual tax free ISA allowance, and appreciate that it really is ‘use it or lose it' as each tax year passes."