Calling all Fathers: Time to start saving for your child's future
- Scottish Friendly launches a Father’s Day promotion Junior ISA for under 18s
- The Junior ISA can be opened with as little as £10 a month and anyone can contribute to the ‘pot’
- Open an account before 30th June and receive a Father’s Day gift from Scottish Friendly
With Father’s day on the horizon, Scottish Friendly is encouraging all dads to give their child a financial head-start in life by opening up a tax-free savings account for them. To help parents achieve this, the friendly society offers its ‘My Select (Junior ISA)’, a long term tax-free investment Junior ISA for children under the age of 18.
The My Select (Junior ISA) is an investment based Junior ISA that can be opened for as little as £10 a month, a lump sum of £50, or a combination of both. Parents or guardians are then able to invest in a mix of assets that are specifically risk and return graded to best suit the investment goals for their child.
In addition, anyone can contribute to the Junior ISA. Grandparents, relatives or family friends can decide to contribute at birthdays or Christmas, knowing they’re helping build something that the child will benefit from in the future. Within each Junior ISA, individual policies (or ‘pots’) can be set up such as ‘Gift From Granny’, ‘Uncle Allan’s Uni Fund’ or ‘Flat Deposit’. As long as the total invested in all policies remains within the child’s annual Junior ISA allowance, he or she can have as many pots as parents would like, helping to identify how money is being contributed.
To encourage parents to open an account for their child, for every My Select (Junior ISA) opened in the run up to Father’s Day (15th June) and then up to 30th June, the parent or guardian will receive that quintessential Father’s Day gift – a pair of socks! What’s more once the investment has been set up, the investor will receive a £50 gift card which can be used at over 70 national retailers.
Neil Lovatt, director of ISA and Savings at Scottish Friendly, comments:
It’s not unusual for parents and guardians to put money aside for their child into a savings account. Many of these will be deposit savings account, however, with interest rates on many deposit accounts currently offering less interest than inflation, the real value of your child’s savings could be eaten away with every year that passes. A tax-free investment Junior ISA could offer better long-term returns and should really be the first consideration for those saving for their child’s future.
While the socks are a nice way to say thank you, the real gift for fathers in opening the account is the assurance that when their child grows up, they will have a financial ‘helping hand’ waiting for them.
The money invested in the My Select (Junior ISA) belongs to the named child and only they can withdraw the money. The child can manage the account from age 16 but won’t be able to take money out until on or after their 18th birthday.
The value of the investment can go down as well as up and the child could get back less than has been paid in whereas investments in a deposit account are guaranteed. Tax-free means the fund the plan invests in grows free of income and capital gains tax (other than tax on dividends from UK shares). Tax treatment depends on your individual circumstances. Tax law may change in the future. To find out more about the My Select (Junior ISA) visit, www.scottishfriendly.co.uk/fathersday