Tax-free children's savings accounts, known as 'Junior ISAs', will be available from 1 November 2011. The new accounts will offer parents a tax-free way to save for their children's future.

What is a Junior ISA?
The Junior ISA is a tax-free savings account for children. However, unlike the Child Trust Fund account (which has been closed to children born on or after 3 January 2011), the government will not make any payments into the new accounts.

The key features of the Junior ISA are:

• children living in the UK who do not have a Child Trust Fund account will be able to have a Junior ISA
• people will be able to put money into a cash account or ‘stocks and shares’ account
• each child will be able to have one cash and one ‘stocks and shares’ Junior ISA at any one time
• there will be a total yearly limit of £3,600 for all payments into these accounts
• accounts will become ISAs when the child is 18

As with Child Trust Funds, the following will apply to Junior ISAs:

• the accounts will belong to the child and they are not able to get the money out until they are 18
• the child can become responsible for the account when they are 16
• any money the accounts make will be tax free
• a range of banks, building societies, credit unions, friendly societies and stock brokers will offer Junior ISA accounts

Click here for more information