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Start saving now for your child's house deposit

Thursday, 3 November 2011 12:40 PM

Parents are being urged to use the launch this week of Junior ISAs to help their kids get on the housing ladder.

The new scheme is a tax-free saving account that enables parents to save up to £3,600 a year on behalf of their children.

Price comparison website Confused.com says that with rising university fees and an unpredictable housing market, many parents cannot afford to help put their children through higher education or save for a deposit.

But it says that if they start saving now they could have enough to help their child buy their first home when they are 18.

Saving £300 a month on an interest rate of six per cent would generate over £116,000 at the end of an 18-year ISA term, it says.

Chris Griffiths, head of savings at Confused.com, said: "We all know saving for your child's future is important as it can really make a difference as they enter adult life.

"Even putting aside a small amount each month will soon mount up to a sizeable sum by the time they're 18, when it can really help open doors by providing the finances to fund things like their first car, a house deposit, university fees or gap years abroad."

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