An estimated six million children are now eligible for a new Junior ISA following the launch of the tax-free savings account on 1 November 2011.

The accounts have similar terms and conditions to an adult ISA, with investments available in cash or stocks and shares, up to an annual contribution limit of £3,600.

Accounts are owned by the child and funds are locked in until the child turns 18, although children will have the right to manage their accounts from age 16.

Junior ISAs are seen as a replacement for Child Trust Funds (CTFs) and are only available to children under the age of 18 who do not have a CTF.

While the government hopes the accounts will encourage more people to start saving, some experts say that many providers have yet to publish their rates.

Unlike the CTF, there will be no Government contributions into Junior ISAs.

‘The bad news is that there will be about six million children with CTFs who face being left in 'zombie' funds, trapped by providers who no longer feel they need to offer a competitive deal’.

If this is an area of investment you wish to discuss further or wish to review any other aspect of your financial planning, please contact Ian Finch at Martin Aitken Financial Services Ltd for further information.

Martin Aitken Financial Services is authorised and regulated by the Financial Services Authority.