What is a Junior ISA?
A Junior ISA is a tax-efficient investment wrapper that allows parents, grandparents, friends and guardians to invest on a child's behalf. The income and profits earned on the investment will be tax-free.
As with standard adult ISAs, there are also cash products, provided by banks and building societies, which pay a tax-free interest rate.
Who can hold a JISA?
Any child under the age of 18 who is resident in Britain and who does not already have a Child Trust Fund. If you are aged 16 or over, you can open a Junior ISA yourself, otherwise a parent or guardian must do so for you.
How much can I save tax free per year?
Parents can invest up to £3,600 every tax year.
When they turn 18. At that point, they can either continue the investment as a standard ISA, preserving its tax-efficient status, or withdraw the investment.
This will differ between providers.
Not at present, although the Government has announced that this will be possible from April 2015.
Unlike with a Child Trust Fund, the Government will not contribute to your child's fund.