28th October 2011
Dudley Building Society will be one the first providers out of the blocks as it launches its new Cash Junior ISA from Tuesday 1st November, offering young people a new opportunity to save for their future.
The Dudley’s Cash Junior ISA can be opened with £100 and offers a tiered rate of interest, paying 1.40% AER for balances from £100 to £2,499 and 2.50% AER for balances of £2,500 and above.
The Junior ISA (JISA) is a brand new type of account that will enable young people to save up to £3,600 tax-free each year. The JISA essentially fills the gap left by Child Trust Fund and no withdrawals or closure are permitted until the account holder reaches 18 years of age – providing a long-term savings option to help the younger generation build funds for their future.
Children born on or after 3rd January 2011 or those born before 1st September 2002 who do not have a Child Trust Fund are eligible for a JISA. The account must be opened and operated by a registered contact which in most circumstances will be the child’s parent or guardian. From the age of 16 the young person can open a Cash Junior ISA and be the registered contact in their own right.
Like an adult ISA, no tax is payable on the interest earned with a JISA. The key difference from the adult version is that a new JISA cannot be opened with a different provider each tax year – only one Cash Junior ISA can be held throughout the young person’s childhood, along with one Stocks & Shares Junior ISA.
Dudley Building Society Savings Manager Samantha Hulse says the Cash Junior ISA is a welcome addition to the Dudley’s savings portfolio:
“The Junior ISA will provide an excellent longer term saving option to help the younger generation build a nest egg for the future. Whether that is saving for university, a deposit on a house or maybe a first car, this account will enable parents and grandparents to give their children a helping hand upon reaching adulthood.”
Further details and information about Dudley Building Society’s Cash Junior ISA are available from the Society’s local branch network or by calling 01384 216838. Alternatively, log onto www.dudleybuildingsociety.co.uk to find out more.