Parents and guardians stepped up the use of the Junior ISA in the 2021/2022 tax year as savers took advantage of the scheme to save for their children’s future.
According to data released by easyMoney, the peer-to-peer lending platform, the number of Junior ISA subscriptions jumped 27% to 1.212m in 2021/2022, representing a 1,607% increase since the scheme was first introduced ten years ago.
easyMoney says the surge in subscriptions coincides with the increase in interest rate, although Stocks and Shares ISA subscriptions grew 65% and Cash ISAs grew just 10%.
“When we feel uncertain about the strength and security of our personal financial situation, it’s common to look towards the future and think, how can I make use of the money I have today to ensure I am comfortable in the future? The same applies to our children – we are keen to do what we can to make sure they have some savings to use or build on once they enter adulthood,” said Jason Ferrando, CEO of easyMoney.
“Add this to the fact that interest rates have been rising and it’s clear to see why more and more parents have been putting money into Junior ISAs. However, in the modern world, children don’t only need financial assistance from parents when they’re young, with many parents choosing or needing to continue supporting their clan well into adulthood, especially when it comes to things like purchasing a home.”
The Junior ISA limit for the 2024/2025 tax year is £9,000.
