The New ISA (NISA) limits are being increased to £15,000pa from July. This is a welcome change allowing couples to shelter up to £30,000pa plus a further £4000 per child into a Junior ISA or Child Trust Fund. It is especially beneficial for those who are being hit by the restrictive pensions rules already referred to.
Savers in JISAs and CTFs should appreciate that the money is the child’s at 18 and they may not share their parents’ ideas as to what it might be best spent on!
It should also be appreciated that although a maxi ISA is otherwise known as a stocks and shares ISA and, as such, involves significantly greater risk than a cash ISA, the level of risk can be controlled simply by judicious selection of the constituent asset classes in which the money is invested. The risk profile of the portfolio can be anything from cautious to adventurous.