More broadly, the value of the average JISA on ii is £12,296, with regular monthly contributions averaging £145 a month. The average age is 10 years old, and some nine percent of JISA accounts are fully subscribed so far this tax year.
Ms Guy continued: “A major advantage of a junior ISA is that any capital gains or dividend income on investments will be protected from tax. That could potentially save thousands over time, especially once a child becomes an adult and begins to pay their own taxes.
“And, with capital gains tax and dividend tax allowances reducing in 2023 and 2024, following the recent Autumn Statement, there’s perhaps never been a more important time to use ISAs to protect our wealth.”
One key thing to note is that children will only get access to their junior ISA when they reach 18 years old. It will also automatically turn into an adult ISA, meaning the parent will no longer have any control over how they spend it.
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