David Nottingham, Personal Finance Expert at NFU Mutual, for comment on how the amount UK families are investing in Junior ISAs each year has reached £1bn for the first time.

The amount of money UK families are investing in Junior ISAs each year has reached £1bn for the first time, according to latest figures.

Introduced in 2011, Junior ISAs continue to grow in popularity as families use them to save money for their children in a tax-efficient environment.

In 2020/21, money was paid into 943,000 Junior ISAs with £7.15bn now invested in the tax-efficient ISAs for under-18s.

However, each year roughly 70% of Junior ISAs are invested in cash, meaning hundreds of thousands of families are missing out on the potential for long-term growth that stocks-and-shares JISAs can provide.

David Nottingham, Personal Finance expert at NFU Mutual, said:

Junior ISAs are a great way to save for a house deposit or university fees in a tax-efficient environment, but many families are missing out on potentially higher long term returns.

Most families can benefit from the fact the money is locked away until a child turns 18, giving them time to ride out stock market volatility and reap the benefit of long-term investing through a Stocks-and-Shares Junior ISA. However, only 30% of Junior ISAs are invested this way.

Full release: Junior ISA contributions reach £1bn a year – but 70% of JISAs still in cash

Media contact: Matt Wilson, NFU Mutual, 07890 255381 / matt_wilson@nfumutual.co.uk