More than half of parents have not heard of the Junior ISA (JISA) a year after the inception of the children's saving product, according to new research.
Friendly society Family Investments found in its poll of 2,000 adults that despite awareness improving, 56% of parents had still not heard of the product - down from 73% last year.
The news comes as it is revealed that just 72,000 JISAs were sold in the first five months after its launch in November 2011 causing organisations such as Family Investments to call on the government and industry to do more. The mutual society has estimated that the take up level is less than 3%.
Despite this, a huge majority of 92% of parents said they thought it was important to save on their child's behalf. Family Investments says parents simply are not aware of the options available to them to do so.
Start saving early
Figures from JPMorgan emphasise the importance of starting early when it comes to savings. The company found that regular savings of just £50 per month at an annual return of 5% could be worth £17,333 by the time a child reaches age 18.
And returns could be even higher for those in a position to sign up to the best deal on the market at the moment.
The Halifax Junior ISA is available to the children of adults already holding a cash ISA with the bank and offers a 6% interest rate. The next best deal is from Nationwide at 3.25%.
This article was written for our sister website Money Observer