The jr ISA -have you taken such an ISA at the Halifax this year?

Question

I was recently told that if I have an ISA and also open a jr ISA for my child the jr ISA would attract a 6% interest. Is this correct?  Would this be a good investment? 
But the money would be locked for some years, until the child turns 18, isn't it? 

I am not sure if they really give the said interest or is there any catch in this type of saving?

Have any of you done this recently? Interested what finance experts think of this offer from Halifax?

thanks

? · Accepted Answer

Hi you can search all of the savings accounts icluding Junior ISAs in the UK by using Moneyfacts whole of market savings search - http://moneyfacts.co.uk/compare/savings/accounts/search/ to see if this is the best rate you can get right now. 

Also take time to read Moneyfacts Tip: Junior ISA loophole for 16 and 17-year-olds! 
Feb 2, 2012 ... Maybe it's deliberate, maybe it's an oversight, but 16 and 17-year-olds currently get two ISA allowances - £3600 on a Junior ISA and £5340 on adult ISAs ...  http://www.moneyfacts.co.uk/.../junior-isa-loophole-for-16-and-17-year-olds020212/

Hope this helps.  Please note: The answers above are for guidance only and should not be acted upon without you receiving professional advice relevant to your circumstances. We strongly urge you to contact an Independent Financial Adviser to assist you before making a decision.

Anonymous · Answer

You are right about your child not being able to access any money in a Junior ISA until they are 18.
Then there is the question, are J ISAs a good thing? Your child can get tax free interest from any cash account by filling is a R85, so the question boils down to tie up the cash until hey are 18. There are pros and cons and you will have to decide. 

The the Halifax 6% interest rate a good deal. Yes, but it is not as straight forward as that. How long will it last? Not for 18 years that is for sure. Then there is companion ISA you have have to get the 65 rate and that only offers 2.6% which is poor and that includes a 12 month bonus of 2.35%. So after 12 months the companion ISA rate falls to 0.24%, that is abysmal. The average of the J ISA and companion ISA rate is about right. 

Before you sign up read and understand the small print and know what will happen in the future.  

Be prepared to move the money about to get the best rates.
http://www.savingschampion.co.uk/best-buys/tables/childrens-accounts/

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The jr ISA -have you taken such an ISA at the Halifax this year?

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