Junior ISAs are long-term savings accounts for children. A child can have a Junior ISA if he or she is under 18, lives in the UK and does not have a child trust fund account.
The money belongs to the child, although anyone can put money in. There are two types of Junior ISA - cash Junior ISA and a stocks and shares Junior ISA. A child can have one or both.
The maximum amount that can be paid into a Junior ISA is £3,720 for 2013/14. Income and gains are tax-free. Except in very limited circumstances the money cannot be withdrawn until the child is 18.
An ISA can be used to build up a nice savings pot for the child or maybe to fund university or college.
Once a child reaches 16, they can open an adult cash ISA and take advantage of the higher investment limits.
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