The new JISA, available through NatWest’s digital investment services, NatWest Invest and Royal Bank Invest, allows up to £9,000 to be saved tax free every year up to the child’s 18th birthday. Customers can start saving from as little as £10 per month, which the bank hopes will encourage more customers to save for their children’s future and help to educate the next generation on the benefits of saving and investments.

Nick Johnson, investing journey lead, NatWest said: “Starting a Junior ISA for a child is a really great way to give them a head start at the age of 18 and, as they get older, teach them about the benefits of saving for their future. We hope to encourage the next generation of investors and ensure as many people as possible have the right tools to help make their money go further.”

More than eight in 10 (83%) UK parents currently saving for their children are doing so in cash, according to research1 carried out by NatWest. Nearly half of which (46%) have simply opened a cash account. Only a quarter (23%) of UK parents are saving for a child via stocks and shares.

NatWest’s new JISA offers parents an alternative to cash for long-term savings, helping to offset the impact of inflation and low interest rates on cash savings. Customers can choose between five different funds, managed by Coutts, offering differing levels of risk depending on personal appetite.

Mohammad Kamal Syed, head of asset management, Coutts, added: “Our research shone a light on what we know is happening - that cash remains king. Unfortunately, only saving in cash exposes customers to the corrosive impact of inflation. In the current economic climate, the real-life purchasing power of your savings will actually decrease over time if held in cash.

“At NatWest we are focussed on trying to reduce the UK’s savings and investment gap. We have a responsibility to raise awareness of how customers can make their money and savings work harder for them. This is why we are giving customers the option to choose their own fund, rather than providing a default option.

“We believe that giving people the freedom to choose the fund that suits them will encourage more customers to start saving and increase engagement with investments more widely. We want to see more people aware of the benefits of investing and hope the JISA is one way to do that.”