The JISA guarantee offers a minimum amount to be paid on maturity of the policy, on the child’s 18th birthday, when Scottish Friendly will pay at least the amount that has been invested into the main fund in addition to any regular bonuses that have been added. Once the JISA is opened by a parent or guardian, anyone can pay into this, including grandparents, to help boost the child’s future savings.

Scottish Friendly’s latest Investor Index revealed that since 2019, the number of JISAs opened had increased by 101% and according to the latest data from HMRC, from 2021 to 2022 £1.5 billion was subscribed to JISAs. However, a whopping 42% was invested in cash, showing that a lot of savers may still be wary of the stock market and therefore missing out on the potential of longer-term growth opportunities for their children.

By extending its JISA guarantee for customers choosing to invest in the with-orofits fund to the maturity date of the policy, when the child is 18 years old, Scottish Friendly hope that UK families may use this as a stepping stone to stock market investing for their child’s future.

In addition to this and for a limited time only until 30 April 2024, Scottish Friendly will pay up to £100 into the JISA for the child after the parent or legal guardian begins investing.

Scottish Friendly’s savings specialist Jill Mackay says: “Investing could be a sensible approach for families looking to build a sum of money to help their children as they enter adulthood.

“Our Investor Index has shown that saving and investing for children remains a top priority up and down the UK. However, the fear of losing money, may still be at play and holding back families from realising the growth potential of the stock market, which could give their child’s savings a boost.

“We’re passionate about helping the family unit achieve financial wellbeing and this development is a commitment to that.”

Callum Stuart, with-profits expert says: “We want to ensure our members benefit from the protection we can offer them.

“That’s why we’re doing our part and extending the with-profits guarantee to apply at maturity, giving families more confidence to invest in the stock market for their child’s future.”