“You can now save up to £9,000 a year into a Junior ISA for a child, which is a pipe dream for many families, but it means that you can add lump sums to any regular savings, on birthdays or Christmas for example.
“In a Junior ISA returns are free from income and capital gains tax, and it can be rolled over into an adult ISA when they turn 18 and save the child from any additional tax on their investments when they grow up.”
Despite this call to action for parents, many savings accounts are struggling to garner decent returns in light of the UK’s soaring inflation rate.
Inflation is at 10.7 percent at the moment and is consequently dampening returns on savings accounts, including Junior ISAs.