Junior ISAs, the children's equivalent of the adult ISA, have continued to grow in popularity despite initial reports of a subdued reception from consumers upon their launch in November 2011.
Replacing the Government-backed Child Trust Funds (CTFs), which were withdrawn in January 2011, these tax-free savings products, also known as JISAs, are available to all children under the age of 18 who do not have an existing CTF.
Anyone can invest up to £3,600 in a Junior ISA during the 2012/2013 tax year, although the account must be opened by the child's parent or guardian or the youngster themselves. The funds must remain untouched until the child reaches their 18th birthday, upon which they can move their money to a different adult account if they wish.
Like adult ISAs, allowances for Junior ISAs can be split into cash and stocks and shares investments. Up to £2,000 can be invested in a JISA and £1,600 in a stocks and shares JISA.
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