A Junior ISA is a new savings vehicle that is launching in November of 2011 and available only to children who are not eligible for the Child Trust Fund. It is a tax free savings account for children born before September 1, 2002 and since January 1, 2011. The limit that can be invested each year is £3,600.

The account can be opened by anyone with parental responsibility and they are known as the Registered Contact. The Registered Contact will be in control of the account until the child is 16 years of age. At that time the child can either take control of the account or leave it under control of the Registered Contact until they reach 18 years of age. No withdrawals can be made from the account until the child is 18 years of age. At 18 years of age, the Junior ISA can be rolled into an Adult ISA and continue contributing to it.

Any person can contribute to the account. Although the government does not contribute, unlike the Child Trust Fund. The Junior ISA take the place of the Child Trust Funds which stopped January 2, 2011. This does not affect existing investors. You cannot transfer a Child Trust Fund into a JISA.