The Government’s tax-free children’s savings product, the Junior ISA (JISA), was launched in November as a replacement to the Child Trust Fund. Mutuals welcome this addition to the market and are leading the way offering cash JISAs.
19 building societies currently offer the cash JISA, with more expected to launch products early in 2012. This compares to the high street plc banks which to date have mostly steered clear of this product.
Commenting, Adrian Coles, BSA Director-General, said "Mutuals have really embraced the Junior ISA. They are well placed to offer these products given their expertise in children's savings and being the main providers of cash CTFs. It’s great to see so many societies in the market and I’m sure more mutuals will follow in the New Year.”