Isas: junior isa changes are now in effect - this is what it means

Saving money for a child or grandchild is something many people opt to do. From savings accounts and ISAs to Premium Bonds and investments, there is a whole host of options when it comes to

beginning to amass money for a youngster's future. Among these options is a Junior ISA - which is a tax-free way of saving for a child. Changes to this type of account - which stands

for Junior Individual Saving Account - have come into effect in recent months. An increase to the limit of how much can be saved per tax year was announced by Chancellor of the Exchequer

Rishi Sunak at the 2020 Budget in March. It was then that he confirmed that the threshold would increase from £4,368 to £9,000 from April 6, 2020. READ MORE: ISA AND MORTGAGE RULES HAVE BEEN

CHANGED This particular date marks the start of the 2020 to 2021 tax year. It means that now, almost double the amount of money can now be saved into this particular account each tax year.

With "My Money Week" having been due to take place across the UK next week, Laura Laidlaw, Head of Customer Communications at Standard Life, commented on the topic of getting

children into the habit of saving. "Learning how to be responsible with money is a valuable life lesson. If children are taught good money habits at an early age, these can stay with

them for a lifetime," she said. DON'T MISS "In the situation we find ourselves in now, with many parents still having to home school, this could be a perfect opportunity to

include important lessons on money and finances. "The way we use money has changed hugely since most of us first started getting pocket money, there are many more options for our

children, especially as they get a bit older." Ms Laidlaw also commented on saving options for children - as well as the practice of getting children into the habit of meeting

longer-term savings targets. "Opening a savings account is another great way to introduce kids to saving and explain concepts like earning interest," she said. "Bank accounts

for children are available from the age of 11 and they offer most of the same features as adult accounts. "You can’t have an overdraft, but you do get a debit card and you can set up

direct debits and standing orders. "Unlike pre-paid debit cards, they are fee free; though you don’t have the same degree of control over your child’s spending, so it’s up to them to be

responsible with their money. "At the minute children are probably spending as much shopping or socialising with friends, so now could be the perfect opportunity to encourage them to

put some of their pocket or birthday money into savings."