Looking our for our children financially is something Independent Financial Advisors at Enable are constantly supporting their clients with. Remember again almost a year ago Halifax injected a dose of competition into the kids’ tax-free savings market and has since established itself as a leading provider of Junior Cash ISAs (JISA). The account presented a fresh challenge to the market by boosting its variable rate to an unrivalled 6% AER when the person with parental responsibility for the child also has their own ISA with Halifax. This ‘relationship rate’, is still offered by Halifax, and is acknowledged as a significant factor of the account’s success.
The majority of Halifax JISA customers benefit from the 6% rate and it has retained a consistent ‘Best Buy’ status since launch as a result. “Our Junior Cash ISAs is a clear demonstration that there is the opportunity for innovation in children’s savings. It encourages a positive savings habit from an early age and allows children to learn that habit from their parents when they save tax free with us too.” Says Richard Fearon, head of Halifax savings. Those that take advantage of the current £3,600 annual limit, at the 6% rate, from birth to the age of 18, would have a tax free savings pot of £117,936* when the product matures into an adult ISA. This is £31,115 more than an account paying 3% AER.
By age group, 0-3 year olds make up the greatest proportion of Halifax’s JISA customers, accounting for over a third (36%) of all accounts that have opened in the last 12 months. 13-15 year olds are the second largest group (29%), while 10-12 year olds are the third largest (19%) group of account holders. This age group split is explained partly by the fact those born between 1 September 2002 and 2 January 2011 are not eligible for JISAs. If you want to make your money work as hard as it can for your kids Enable’s IFA’s in Bishops Stortford can help you find your way.
Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 – Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE