Isa limit rise good for junior savers, says BSA

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Isa limit rise good for junior savers, says BSA

Wed 27th Jul 2011

The Building Societies Association (BSA) has hailed the government's intention to allow the Junior Isa limit to rise by £600 as offering a promising start to younger savers.

Launching in November, the Junior Isa will in part replace the Child Trust Fund by increasing the annual limit on junior savings accounts from £3,000 to £3,600, therefore operating in a similar way to a mini cash Isa.

Brian Morris, BSA head of savings policy, said: "The Junior Isa will plug some of the gap left by the coalition's abolition of the Child Trust Fund.

"Mutuals are well placed to offer the Junior Isa," he added, given their expertise in child savings, already having a significant share of the cash Isa market and being the market leaders for cash-based Child Trusts Funds.

The original funds were abolished following a government announcement last October. The BSA's comments come following the laying out by the government today (27th July) of detailed amendments to the regulations governing existing individual savings accounts.

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