ISAs

The man at the heart of a charitable fund which last year failed to attract sufficient investor interest said government plans to launch an ISA investing in schemes to help the poor are doomed to fail.

Savers may be offered tax-free individual savings accounts (ISAs) to invest in schemes to help the poor.

The Investment Management Association (IMA) has written to the Treasury urging the government to consider providing contributions to Junior ISAs at birth.

The government will today confirm a maximum annual allowance of £3,000 for the new Junior ISAs.

With ISA season upon us, Maria Merricks investigates where money is being allocated

An annual cap of £3,600 for a tax-free Junior ISA fits the general consensus and would be in line with stakeholder savings, TISA's Malcolm Small says.

The industry reaction to Junior ISAs has been mixed, with some hailing them a sensible means of saving and others lambasting them as a crude money-saving initiative.

The government will launch a 'Junior Isa' for children next autumn to help fill the gap left by Child Trust Funds (CTF).

ISA allowances for the next financial year could be as high as £10,680 as savers benefit from a Retail Price Index (RPI)-linked increase.

Savings in stocks and shares ISAs were worth £178bn in 2009/10, beating £172bn in cash ISAs, according to ONS figures.