64,800 over an eighteen year period, with the limit rising with inflation from 2013. Parents will have a choice of paying into a cash JISA or a stocks and shares JISA.
The Junior ISA, then, is the new children's savings scheme set up to replace the scrapped child trust fund. But, is it the best way for parents to save on behalf of their children?
As with adult ISA's the two types of Junior ISA available are cash ISA's and stocks and shares ISA's. A cash ISA is a safer investment. As it is a savings account the money is not going to disappear. However, the potential gain may not be particularly high. A stocks and shares ISA is riskier but potentially more rewarding. You are investing in the stocks and shares of companies, which can fall as well as rise, but can rise much more significantly than cash ISA's. The likelihood is that over the long-term a stocks and shares ISA will produce a better return but it is not guaranteed.
For those able to invest a relatively large amount the Junior ISA is significantly better than its predecessor, the child trust fund, which had a limit of
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