Isas offer "flexibility of choice"
Parents or grandparents looking at options for saving for children may want to consider an Isa, according to statements made by the Building Societies Association (BSA).
BSA spokesperson Rachel Le Brocq said Isas' tax free basis and the ability to choose to invest a mixture of cash and stocks and shares makes it an attractive savings product.
However, she added entire cash Isas are more popular in the current economic climate.
"People obviously are having some worries about the flexibility of their money and that stocks and shares obviously go up and down with the stock market, so we are seeing people putting their money into cash Isas," she said.
Ms Le Brocq added the popularity of Isas may be a long-term reaction as people realise saving is preferable to spending for the future.
In other news, families wanting to put away savings for children may be interested in British Gas' price increases – a move the Child Poverty Action Group said will cause fuel poverty.
