According to HM Revenue and Customs (HMRC) figures, around 40 children had a Junior Isa pot worth £200,000 or more at the end of the 2020/21 tax year.
And about 500 had piggy banks worth £100,000 or more, the figures indicate.
The rounded figures were released following a freedom of information request on behalf of asset managers St James’s Place.
Around 8,000 children had Junior Isas worth at least £50,000 – which may eventually help some get up the property ladder if they use the money as a down payment.
Meanwhile, approximately 1,456,330 children had less than £10,000 in their account.
The numbers illustrate the remarkable compounding effects of regular long-term investing to achieve that return
Alexandra Loydon, St James’s Place
Junior Isas, or Jisas, helps children build a saving habit from an early age. The money held in Junior Isas can be held in cash, invested in stocks and shares, or a combination of both.
Similar to adult Isas, the bills are a tax-friendly way to save.
Parents or guardians can open a Junior Isa and manage the account, but the money belongs to the child.
Money can also be deposited into accounts by wider family members, such as grandparents.
The child can take over the account when they are 16, but they cannot withdraw the money until they are 18.
Junior Isa’s automatically turn into an adult Isa when the child turns 18.
In the current tax year, which ends on April 5, up to £9,000 can be put into a Junior Isa.
Junior Isas was first launched in 2011 as a replacement for Children’s Funds (CTFs).
Parents were allowed to transfer CTF savings into them, meaning some of the largest Junior Isa pots could have been built up over a longer period of time, St James’s Place suggested.
Alexandra Loydon, Director of Partner Engagement and Counseling at St James’s Place, said: “While adults can pay up to £20,000 annually to an Isa, they can pay an additional £9,000 to each child’s Jisa, meaning a family of four can now pay £ pay 58,000 a year to Isas.
She added: “Not only is a Jisa protected from income and capital gains taxes, but the numbers illustrate the remarkable compounding effects of regular, long-term investing to achieve those returns.
“It also shows the tangible benefits of using the maximum annual Jisa allowance, which you can use each year with the potential to build a substantial pot for the future.”
DISCLAIMER:- Denial of responsibility! www.csnews-live.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email at loginhelponline@gmail.com The content will be deleted within 24 hours.
