Scottish Friendly extends JISA guarantee to help parents invest for children’s future
JISA guarantee extended to maturity of policy as the financial mutual wants to help more UK families invest
Additional benefit of up to £100* cashback introduced for a limited period
Leading financial mutual, Scottish Friendly, has added a guarantee at the maturity date of its Junior ISA (JISA) policy for With-Profits investors, to help more UK families invest for their children’s future with some peace of mind.
The JISA guarantee offers a minimum amount to be paid on maturity of the policy, on the child’s 18th birthday, when Scottish Friendly will pay at least the amount that has been invested into the Main Fund in addition to any regular bonuses that have been added. Once the JISA is opened by a parent or guardian, anyone can pay into this, including grandparents, to help boost the child’s future savings.
Scottish Friendly’s latest Investor Index revealed that since 2019, the number of JISAs opened had increased by 101% and according to the latest data from HMRC, from 2021 to 2022 £1.5bn was subscribed to JISAs. However, a whopping 42% was invested in cash, showing that a lot of savers may still be wary of the stock market and therefore missing out on the potential of longer-term growth opportunities for their children.
By extending its JISA guarantee for customers choosing to invest in the With-Profits fund to the maturity date of the policy, when the child is 18 years old, Scottish Friendly hope that UK families may use this as a stepping stone to stock market investing for their child’s future.
In addition to this and for a limited time only until 30th April 2024, Scottish Friendly will pay up to £100* into the JISA for the child after the parent or legal guardian begins investing
Scottish Friendly’s savings specialist Jill Mackay says: "Investing could be a sensible approach for families looking to build a sum of money to help their children as they enter adulthood. Our Investor Index has shown that saving and investing for children remains a top priority up and down the UK. However, the fear of losing money, may still be at play and holding back families from realising the growth potential of the stock market, which could give their child’s savings a boost. We’re passionate about helping the family unit achieve financial wellbeing and this development is a commitment to that.
Callum Stuart, With-Profits expert saysWe want to ensure our members benefit from the protection we can offer them. That’s why we’re doing our part and extending the With-Profits guarantee to apply at maturity, giving families more confidence to invest in the stock market for their child’s future.
Contacts for more information
Kevin Brown, PR & Communication, Scottish Friendly
07512194336
Editors notes:
*For regular monthly payments set at less than £50 a month, the child will receive a £50 one off payment into the Junior ISA. However, for regular premiums of £50 or more per month, the child will receive the initial £50 payment and a further £50 payment after 6 regular monthly payments have been made. The cashback offer runs until the 30th April 2024.
Full terms and conditions of the cashback offer can be found here:
My Select Junior ISA - T&Cs | Scottish Friendly
Disclaimer
Remember that the value of investments can go down as well as up and the child could get back less than you paid in. The fund offers a guaranteed capital sum on the child’s 18th birthday, and the 10-year and 15-year anniversaries of the start date of the investment. If you transfer or switch out of the fund, the guaranteed capital sum will be reduced and may cease to apply if you fully transfer or switch out of the fund.
The money belongs to the child and they will be able to access it when they turn 18.
Past performance is no guide to future results. Tax treatment depends on individual circumstances which can change in the future.
If the child withdraws money before the end of 5 years, there will be a £50 deduction from the withdrawal value.