The volume of new Junior ISA policies opened across the UK in the fourth quarter of 2024 was up 12% on the previous quarter, according to data from Scottish Friendly.
Its Investor Index shows appetite for JISAs was particularly strong in the North West of England, with the region recording a jump in new sales of 22% on the last quarter. Wales also saw a sharp rise in demand, with a 17% increase in sales.
Meanwhile, Scotland and the South East also beat the national average increase in new JISAs being opened, both recording a 13% quarter-on-quarter increase.
Scottish Friendly said the North West also saw parents putting more money into JISAs, with opening balances up 14% quarter on quarter, compared to a UK-wide increase of 2%.
Jill Mackay, head of marketing at Scottish Friendly, said: “Our research shows that six out of 10 parents worry that their child won’t be able to afford to leave home once they become adults, with over half concerned that the deposit for rented accommodation will be out of their reach.
“Taking a JISA out for your child is a practical and affordable way to help the next generation build a nest egg that enables them to spread their wings when the time comes. It’s great to see so many parents taking steps to help build greater financial resilience for the young adults of the future.”
On average, new parents tend to open a JISA for their child when they turn 3+ years old. However, the mutual said the cost of delaying can be significant.
It said three ‘lost’ growth years sees the child missing out on nearly £6,000 by the time they’ve reached 18. For every subsequent year’s delay, the loss is compounded. If parents wait until the child is 10 years old before taking out a JISA, the child misses out on over £15,000 by the time they reach 18.
Mackay added: “Perhaps it’s no wonder that more parents are thinking about putting more away to help towards their child’s future goals. It’s great to see and could make a real difference towards the financial resilience of our young adults of the future.”
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