The annual contributing limit is £3600, but this cap will increase each year in line with the Consumer Price Index from 5 April 2013.
Anyone can contribute to a child’s Junior Isa and when the child turns 18, the fund will become an adult Isa, giving the child full control over the money.
Cottons Financial Planning and Avalon Investments have teamed up to form a company called The Children’s Isa, which is offering a Junior Isa in partnership with Prudential.
The Jisa offers a portfolio of products to choose from, including low cost, actively managed, ethical and Sharia funds.
Witan Investment Trust’s Junior Isa requires a minimum lump sum investment of £250 or £50 monthly saving. It will form part of the Jump range of children’s saving options and parents will receive a £25 John Lewis Gift Voucher for each account opened before the 31 December 201
Fidelity FundsNetwork’s Junior Isa has access to a range of more than 1,200 funds for investment from more than 70 providers.
Hargreaves Lansdown, Bestinvest, Share Centre, The Children’s Mutual and Alliance Trust have all gone live today with their own Junior Isas. Alliance Trust’s Jisa offers access to its i.nvest platform with more than 1400 funds, including the low-cost Vanguard range of funds, as well as access to foreign exchanges around the world.
Clients who open a Junior Isa by 31 December 2011 will have the annual administration fee of £25 waived until 1 August 2012.
Fundsmith has said its Equity Fund Junior Isa won’t charge performance fees, initial fees or redemption fees, with limited trading costs and a flat 1 per cent annual management charge if bought directly, and a total expense ration of 1.17 per cent.
F&C Investment Management and J P Morgan Asset Managers are set to launch Junior Isas in the first quarter of 2012