Junior Isa limit raised

The Government has given confirmation that the new tax-free savings accounts for under 18s – dubbed the Junior Isa – will have a higher annual limit of £3,600, rather than £the 3,000 we were all expecting.

Fidelity, one of the several fund managers to be offering the Junior Isa, said that if the full allowance was invested each year with assumed growth of 5 percent and taking into account inflation then by the age of 18 the total Isa would be worth £101,336.52.

Rob Fisher at Fidelity said: 'With the increased focus on the individual to provide for themselves, rather than rely on the state or employer, the Junior Isa has the ability to teach an important lesson to young people early in their life. The earlier they start saving, the earlier they can benefit from the compounding of their assets and the long term performance of the stockmarket.'

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