Junior Isa limit set to jump to £3,600
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The Government is expected to increase the junior Isa limit by 20 per cent to £3,600 next week, according to reports.
Treasury financial secretary Mark Hoban is expected to make the announcement, which would replace the £3,000 indicated when child trust funds were closed to new savers.
Sources in the article say the move is part of plans to “further align” the tax shelters between CTFs and junior Isas amid concerns that banks and building societies are offering uncompetitive interest rates on CTFs.
Children born between September 2002 and January 2011 each receive £250 in CTFs vouchers, they would not be eligible to have a junior Isa under proposals announced earlier this year.
The 20 per cent increase on junior Isas is expected to come into force in November 2011 with the alignment of the tax shelters at a later date.
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