Government figures reveal 295,000 new accounts were opened in the 2012/13 tax year with a total of £392m invested.

This compares to the 71,000 accounts opened between 1st November 2011 and April 2012.

However, the average amount invested in a junior ISA has gone down from £1,623 to £1,327. Family and friends can invest up to £3,600 tax free into the products.

Junior ISAs replaced Child Trust Funds, which were savings accounts for children born between 1 September 2002 and 2 January 2011 and included free cash vouchers of up to £250 given out by the Government.

The Treasury is currently consulting on allowing the transfer of savings from a Child Trust Fund account into a junior ISA. The consultation closes on 6 August.

Danny Cox, head of financial planning at Hargreaves Lansdown said: “Junior ISA seems to be gaining some momentum which will be improved once transfers are allowed from Child Trust Funds. Allowing transfers would seem far more likely to go ahead than an all-out merger and doing nothing is not a realistic an option.”

Meanwhile, sales of adult ISAs have also increased with 14.6 million new accounts opened in the 2012/13 tax year and £57bn invested compared to 14.2 million and £53.6bn in 2011/12.