Junior ISAs replace Child Trust Funds

Junior ISAs have been available since November 2011, when they replaced Child Trust Funds. Family and friends can contribute up to £3,600 a year into either cash or stock and shares accounts, and from April 2013 the annual investment limit will increase in line with consumer price index.

Accounts can be established for any UK resident under the age of 18, but no withdrawals can be made before the child's 18th Birthday, except in the case of terminal illness or death. When the age of 18 is reached, the Junior ISA will automatically be converted into an adult ISA.