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Junior ISAs: Saving for the next generation
Junior ISAs: Saving for the next generation
Junior ISAs: Saving for the next generation
Junior ISAs: Saving for the next generation
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Junior ISAs: Saving for the next generation

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The retail savings market is set to increase in importance as financial institutions battle for deposit funding. JISAs are dedicated children's savings accounts that offer providers an opportunity to …

The retail savings market is set to increase in importance as financial institutions battle for deposit funding. JISAs are dedicated children's savings accounts that offer providers an opportunity to tap into a new source of deposits. Launched in November 2011, JISAs are new to the market, heightening the need to appreciate what consumers want from these products.Harness primary insight to understand the attitudes of consumers.Sculpt more targeted strategies through a greater understanding of how the consumers' appetite for JISAs varies demographically.Use Datamonitor's forecasts to help inform your future plans.Understand what product features will appeal to consumers.Discover which providers are currently active in the market and the details of their product offerings.Compared to the discontinued Child Trust Fund (CTF), JISAs offer parents far more flexibility in terms of where and how the savings are invested. This flexibility has increased consumer appetite for exposure to stocks and shares.Affordability is the most important reason for not opening a JISA account. Unlike CTFs, JISAs do not come with a government contribution and this is likely to disincentivize poorer families.Parents of a young age, high income earners, and parents with one child are the most likely to open a JISA. However, consumer awareness of JISAs is low and the majority of parents are unlikely to open a JISA.What factors will affect consumer demand for JISAs'Who is likely to open a JISA'What will be the size of the JISA market in 2013'What products are currently available on the market'What other options do parents have to save for their children'

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  • 1. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email!Junior ISAs: Saving for the next generationPublished on April 2012 Report SummaryThe retail savings market is set to increase in importance as financial institutions battle for deposit funding. JISAs are dedicatedchildrens savings accounts that offer providers an opportunity to tap into a new source of deposits. Launched in November 2011,JISAs are new to the market, heightening the need to appreciate what consumers want from these products.Harness primary insightto understand the attitudes of consumers.Sculpt more targeted strategies through a greater understanding of how the consumersappetite for JISAs varies demographically.Use Datamonitors forecasts to help inform your future plans.Understand what productfeatures will appeal to consumers.Discover which providers are currently active in the market and the details of their productofferings.Compared to the discontinued Child Trust Fund (CTF), JISAs offer parents far more flexibility in terms of where and how thesavings are invested. This flexibility has increased consumer appetite for exposure to stocks and shares.Affordability is the mostimportant reason for not opening a JISA account. Unlike CTFs, JISAs do not come with a government contribution and this is likely todisincentivize poorer families.Parents of a young age, high income earners, and parents with one child are the most likely to open aJISA. However, consumer awareness of JISAs is low and the majority of parents are unlikely to open a JISA.What factors will affectconsumer demand for JISAsWho is likely to open a JISAWhat will be the size of the JISA market in 2013What products are currentlyavailable on the marketWhat other options do parents have to save for their children Table of ContentJunior ISAs: Saving for the next generationDATAMONITOR VIEWCatalystSummaryANALYSISJISAs offer similar benefits to adult ISAsThe lack of a government contribution is a drawback but JISAs offer a number of benefits that will appeal to consumers- (Untitled sub-section)- The lack of any government contribution will disincentivize lower income families to open a JISA account- Tax-free saving is not a benefit exclusive to JISAs but there simplicity may win throughWider macroeconomic and behavioral trends will boost JISAsNearly half of parents agree that they should save for their childrens future- Consumers propensity to save for their children decreases with age- Higher income earners believe more strongly in saving for their childrens futureInitial take-up of JISAs will be slowed by a lack of consumer awareness and willingness to act- The demand for JISAs will be adversely effected by lack of consumer awareness- The majority of consumers are currently unlikely to open a JISA- Younger parents are more likely to open a JISA than older parents- Parents propensity to open a JISA decreases with the number of children they haveCash JISAs are in more demand than other types of JISAs- The flexibility of JISAs has increased consumer appetite for exposure to stocks and shares- Affordability is the most important reason for not opening a JISAJunior ISAs: Saving for the next generation (From Slideshare) Page 1/4
  • 2. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email!- Concerns regarding control deter consumersThe value of the JISA market is forecasted to be £696m in March 2013Banks have been slow off the mark in the JISA market- Mutuals currently dominate the cash JISA sector- Several providers are trying to add value to their products by offering tie-ins, greater flexibility, and free gifts- Stocks and shares JISAs are offered by banks, mutuals, and investment housesDemand for JISAs may be depressed by alternative options for child savingsAPPENDIXSupplementary dataMethodology- Overall methodology- Other Secondary Sources- Forecasting methodologyFurther ReadingAsk the analystDisclaimerTABLESTable: Agreement with the statement that "parents should save for their childrens future," by age bandTable: Agreement with the statement that "parents should save for their childrens future," by income bandTable: Likelihood of parent opening a JISA, by age groupFIGURESFigure: JISAs offer more flexibility than CTFsFigure: 49% of parents believe that they should save for their childrens futureFigure: 1824 year olds believe most strongly in parents saving for their childrens futureFigure: 78% of consumers with an income of over £60,000 believe that parents should save for their childrens futureFigure: The majority of consumers have not yet heard about JISAsFigure: Only 8% of parents are very likely to open a JISAFigure: Parents in the 2534 age group are the most likely to open a JISAFigure: Parents with one child are the most likely to open a JISAFigure: Cash JISAs are the most popularFigure: 61% of parents said that a lack of money was a reason for not opening a JISAFigure: The value of JISA accounts is forecasted to be £696m by March 2013Figure: Halifax offers the best rate on cash JISAsFigure: Halifax charges the lowest percentage management fee amongst the stocks and shares JISAs currently on the marketCompanies mentionedBank of England, CMS Energy Corporation, Family Investments, Hutchison 3G UK Limited, Metro AG, Nationwide Building Society,Omnicom Group Inc., Royal Bank of Scotland Group PLC, Skipton Building SocietyJunior ISAs: Saving for the next generation (From Slideshare) Page 2/4
  • 3. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email! Fax Order Form To place an order via fax simply print this form, fill in the information below and fax the completed form to: Europe, Middle East and Africa : + 33 4 37 37 15 56 Asia, Oceania and America : + 1 (805) 617 17 93 If you have any questions please visit http://www.reportlinker.com/notify/contact Order Information Please verify that the product information is correct and select the format(s) you require. Junior ISAs: Saving for the next generation Product Formats Please select the product formats and the quantity you require. 1 User License--USD 2 795.00 Quantity: _____ Contact Information Please enter all the information below in BLOCK CAPITALS Title: Mr Mrs Dr Miss Ms Prof First Name: _____________________________ Last Name: __________________________________ Email Address: __________________________________________________________________________ Job Title: __________________________________________________________________________ Organization: __________________________________________________________________________ Address: __________________________________________________________________________ City: __________________________________________________________________________ Postal / Zip Code: __________________________________________________________________________ Country: __________________________________________________________________________ Phone Number: __________________________________________________________________________ Fax Number: __________________________________________________________________________Junior ISAs: Saving for the next generation (From Slideshare) Page 3/4
  • 4. Find Industry reports, Company profilesReportLinker and Market Statistics >> Get this Report Now by email! Payment Information Please indicate the payment method, you would like to use by selecting the appropriate box. Payment by credit card Card Number: ______________________________________________ Expiry Date __________ / _________ CVV Number _____________________ Card Type (ex: Visa, Amex…) _________________________________ Payment by wire transfer Crédit Mutuel RIB : 10278 07314 00020257701 89 BIC : CMCIFR2A IBAN : FR76 1027 8073 1400 0202 5770 189 Payment by check UBIQUICK SAS 16 rue Grenette – 69002 LYON, FRANCE Customer signature:   Please note that by ordering from Reportlinker you are agreeing to our Terms and Conditions at http://www.reportlinker.com/index/terms Please fax this form to: Europe, Middle East and Africa : + 33 4 37 37 15 56 Asia, Oceania and America : + 1 (805) 617 17 93Junior ISAs: Saving for the next generation (From Slideshare) Page 4/4

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