On November 1st, 2011, Compare Junior ISA becomes effective. Junior ISA is a program developed in the UK to help prepare save money for their children’s future. This program allows parents to set aside money each year, tax free that will slowly accumulate into money that can be used for their children’s college payments or anything else.
The money must stay in the fund until the child reaches the age of 18. At that time, the money can be withdrawn and used for whatever purpose the family decides. With Junior ISA, anyone can contribute to the fund. Anyone of legal age can manage the fund; however, when the child turns 16 years old, the management responsibility becomes his own. The money placed into a Junior ISA account is invested in either a cash based account or in stocks. This program offers a way for parents to help their children succeed in life.
When a child turns 18, the money is most likely used for college tuition, to start a business or to purchase a home. This program was developed after the Child Trust Fund program was eliminated. People in the UK who would like to take advantage of this program should obtain more information about it.
