ncbs launches the new 1st issue cash Junior ISA
1 November 2011 - National Counties encourages families to save for their children's future
With the cost of education, especially university tuition fees, increasing dramatically and increased deposits required for house purchase, any encouragement of the savings habit amongst younger savers is to be welcomed. Accordingly, National Counties is delighted to participate in the Junior Individual Savings Account (ISA) initiative to encourage young savers and their families and friends to plan for the future. Paying up to 3.01% AER tax-free (variable) National Counties' 1st Issue cash Junior ISA will be available from 1 November 2011.
The Junior ISA allows children their own tax-free savings account, which anyone can pay into but from which no withdrawals can be made until the child reaches 18. As well as parents, grandparents, other friends, family members or the child can pay into a Junior ISA provided the annual limit - £3,600 for the current tax year - is not exceeded. Any money paid into the account becomes the child's, including for tax purposes.
Keith Barber, Associate Director Business Development at National Counties, said: "We are pleased to be able to offer young savers and their families a simple and straight forward means of saving for the future. The tax protection provided by the Junior ISA will help make the most of the money set aside which can be used for any purpose at age 18."
Junior ISAs are available to any child born after 2nd January 2011 and to any child under 18 born before this who does not have a Child Trust Fund and can be opened on behalf of a child aged under 18 by an adult with parental responsibility - on reaching age 16 the child has the option of taking over the operation of the account. Alternatively, children aged 16 or 17 can open a Junior ISA for themselves (as well as an adult Cash ISA). Starting with savings of just £1, National Counties is pleased to offer its own Junior ISA which has a competitive variable interest rate which rewards saving by increasing as the balance rises.
1st Issue cash Junior ISA
|
Balance: |
Gross rate: |
Net rate: |
Gross AER*: |
|||||||||
|
£1 + |
1.81% |
Tax-free^ |
1.81% |
|||||||||
|
£1,000 + |
2.26% |
Tax-free^ |
2.26% |
|||||||||
|
£3,000 + |
3.01% |
Tax-free^ |
3.01% |
The 1st Issue cash Junior ISA's key features are as follows:
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Tax-free variable interest rate which increases as the balances rises
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Start your child's savings with as little as £1 and add more whenever you like
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Save up to £3,600 in the current tax year (statutory limit for 2011/12)
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No one can withdraw money or close the account until the child (the account holder) reaches age 18
-
Account can be opened by transfer of an existing Junior ISA
-
Transfer to another Junior ISA account allowed after 45 days' notice
-
Interest added to the account annually on 1 October
To help you keep track of the savings a statement is issued every October. Money paid into the Junior ISA is a gift to the child which cannot be returned to the person making the payment.
*AER stands for Annual Equivalent Rate and illustrates what the annual rate would be if interest was compounded.
^Interest is described as being tax-free as it is currently exempt from income tax. The future tax treatment of Individual Savings Accounts may vary.
To find out more details about the 1st Issue cash Junior ISA please click here.
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