The Junior Individual Savings Account (known as JISA), launched in September 2011, has been a popular alternative to the Child Trust Fund and is available for children born before 1st September 2002 and after 1st January 2011 (children born between these dates were eligible for the Child Trust Fund and cannot subscribe to a Junior ISA).
In many respects, the Junior ISA works in a similar way to adult ISAs. The ISA is simply a tax free wrapper that can contain investments such as stocks and shares and cash savings accounts. The Junior ISA limit for the current tax year is £3,720, and unlike adult ISAs, there is no limit as to how it can be invested – the whole of the ISA can be held in stock market investments, or cash, or a combination of the two. Another benefit the Junior ISA holds over its senior brethren is the ability to freely convert the ISA from stocks and shares to cash and back again as many times as you wish, whereas the adult ISA can only convert from cash to stocks and shares once (and not be converted back again).