Almost half of parents wrongly assume all children can have a Junior Isa and 44 per cent either think there are no limits on how much can be paid into one each year or are not sure if there are any limits, according to research by SavvyWoman.
Opimium Research surveyed 1,357 parents on behalf of SavvyWoman about the rules on who could have a Junior Isa.
The study also showed that 37 per cent of parents did not know or are not sure whether all children or only certain children are allowed a Junior Isa.
Older parents were less likely to give the wrong answer, with 45 per cent of parents aged 55 and over wrongly stating that all children are allowed a Junior Isa, compared to 52 per cent of parents aged 35-54 and 53 per cent of parents aged 18-34.
Parents with children aged between 7 and 10 were most likely to give the correct answer about which children are entitled to take out a junior Isa.
The research also asked parents whether they thought that there were any limits on how much money they can pay into a Junior Isa each year. It found that 11 per cent of parents thought there were no limits on how much they can pay into a Junior Isa.
Around 55 per cent correctly said there are limits on how much they can pay in, but a third of parents did not know or were not sure.
Sarah Pennells, founder of SavvyWoman, said: “The first steps of any new savings product are bound to be a little wobbly but by the time it’s reached its third birthday, you’d think there would be a much more widespread understanding of how a Junior Isa works.
“Our research shows that many parents are still baffled by or aren’t sure about the rules. Junior Isas aren’t the same as Child Trust Funds or adult Nisas, which may explain why parents haven’t got to grips with them.”
Last year, 432,000 Junior Isa accounts were subscribed to in the latest financial year, amounting to £578m, with three quarters investing in cash.
ruth.gillbe@ft.com
