Scottish Friendly welcomes Junior ISA

Scottish Friendly has welcomed the Government’s proposals for the new Junior ISA.

Neil Lovatt, sales and marketing director of Scottish Friendly commented:

We very much welcome the new Junior ISA. Scottish Friendly research shows there is a strong understanding of the term ISA. It’s more user-friendly and a concept most people are familiar with when talking about children’s savings.

While the Child Trust Fund was very successful the new name is an improvement because it associates the product directly with a well known and understood tax wrapper.

It’s disappointing the Government didn’t have the foresight to reduce the cost to the industry by simply changing the name of the Child Trust Fund to a Junior ISA and abolishing the voucher. This would have been a much simpler and cheaper method of reaching the same result.

Parents’ saving for the future has never been more important. Higher education fees and expenses, flat deposits and gap years are now an every day occurrence for young adults and a Junior ISA is the perfect way to provide a comfortable pot to help cushion the blow.