Children’s savings provider Family Investments has witnessed high demand for its new Junior ISA with almost 6,500 accounts opened since the product was launched in November.
Demand has been strongest among existing Child Trust Fund holders, suggesting that parents want to make equal provisions for siblings who may have missed out on the CTF, the company said.
All children born after January 2, 2011 are eligible for the new savings account but, unlike its predecessor, the Junior ISA does not come with a contribution of up to £250 from the Government to kick-start the savings habit.
However, many parents are choosing to add £250 or more to their regular savings to match the Government CTF contribution, the provider said.
So far, the typical monthly contribution totals £28, slightly higher than the market average of around £24 for Child Trust Funds.
John Reeve, chief executive of Family Investments, said: “The fantastic start we have seen for Junior ISA reflects an underlying demand among parents to make a financial provision for their child from an early age.”
But he added: “Both the Government and the savings industry need to continue to build awareness to ensure that the current momentum continues to build.”
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