Individual Saving Accounts (ISAs)
In the U.K., parents of children born before 2002, who do not qualify for a Child Trust Fund, may use their ISA allowance to save for their child's higher-education costs. Cash ISAs are savings accounts that allow adults to save up to £3,600 tax-free each year or £7,200 in stocks and shares with an overall maximum of £ 7,200. The cash limit will rise to £5,100 from April 2010 and the stocks-and-shares limit to £10,200 per year with the overall limit not to exceed £10,200 in 2010. For more information, visit Saving and Investing with ISAs or Children's Savings Schemes and Accounts, both part of Directgov.uk.
