Investments 

‘University Isa gives parents cost analysis’

The director of the Children’s Isa said the new University Isa would provide information on university fees, student loans and the cost of living in university towns and cities across the country.

An online calculator works out the total cost of a child’s university education, the savings needed and which products could address those needs.

Mr Dawson said: “This seemed a natural progression for us. Whereas the Children’s Isa is suitable for a whole range of investors, we know many parents are particularly concerned about the financial burden of tuition fees for their children.

“When you take inflation into account, for a child born today the real cost of going to university could be as high as £75,000.”

Georgina Partridge, co-founding partner of London-based Plutus Wealth Management, said: “The concept sounds like a good idea, although the cost involved of managing funds would influence one’s decision whether to invest in something with that name or just do it through normal Isas.

“Parents don’t understand or appreciate early enough the cost of education so anything that helps is good.”

Background

* Came to market in November 2011.

* Launched by Manchester-based Cottons Financial Planning and Avalon Investment Services to help parents save on their children’s behalf.

* 10,000 applications since launch.

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