A junior ISA allowing parents to save for their children's futures is in the pipeline.
Plans for a simple children's saving account are being finalised.
A tax free savings account for children will be introduced in Autumn next year under proposed government plans, following the decision to scrap Child Trust Funds (CTFs).
Financial Secretary to the Treasury, Mark Hoban said money deposited in the junior ISA account will be owned by the child and locked in until adulthood. All the returns will be tax free, although annual contributions will be capped, and, in contrast to CTFs, no contributions will be paid in by the government.