Under the Junior ISA scheme parents, or indeed anyone with an interest in a child's future, may deposit up to £3,000 per year in either a cash ISA or a stocks and shares ISA provided that however many different individuals invest the total annual investment per child must be no more than £3,000. Parents with more than one child may have a separate Junior ISA for each qualifying child.

The new Junior ISA, the coalition Government's replacement for the Child Trust Fund (CTF), is due to commence on the 1st of November 2011. It will work in basically the same way as an ordinary adult ISA though with a few important differences.

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Cash ISAs can offer savers with a way to invest their money securely without paying any tax. This is similar to a normal savings account and there are a variety of different options available including instant access and fixed rate.

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