Top Child Trust Funds Article Discussion Area

xylophone

also worry she’ll splurge it on nothing. 

How much is it?

cloud_dog

Ianstone1 said:

Daughter is 18 tomorrow and is asking what to do with the CTF. I have no clue. Should I suggest tying it up in an account (she’s not the most sensible with money), or not?  Don’t want to give duff advice, but also worry she’ll splurge it on nothing. 

I'm hoping (expecting) for the S&S JISA (will be ISA) to be moved over in to a Lifetime ISA, still in S&S but, that is my idea and am hopeful they will go along with my suggestions.  Ours also has a cash JISA which they will take responsibility for, hopefully be a little sensible with it but she has been brought up with the mantra of 'once it's gone, it's gone!'.

Ianstone1

xylophone said:

also worry she’ll splurge it on nothing. 

How much is it?

Hers was hit by the 2008 crash, so it’s less than the government put in. 

Alexland

Ianstone1 said:

Hers was hit by the 2008 crash, so it’s less than the government put in. 

It must have been a poor investment not to have recovered from the 2008 crash yet. Maybe with a hopeless friendly society offering low growth and high fees? Or maybe moved to a Cash CTF after the drop to crystallise the loss? Still if it's only a few hundred pounds then I guess that's a starting balance on an adult current account. Hardly a life changing amount to get at 18.

Goldwing1

My daughter is cashing hers in and moving it to a cash account for now. The return has been appalling. The account has been moved around by the owning companies over the years, ending up with Family Investments. The CTF's never really got traction and there was very little competition. Fortunately I saw the writing on the wall early on and set up an alternative savings account.

MikeJXE

Im_A_Mouse_In_Need said:

I have a CTF in my son's name. It's a stakeholder shares account, current value £400
I want to open a JISA with Vanguard. This is not allowed this while there is a CTF in his name.
I can convert the CTF to a JISA with BMO and transfer the new JISA to Vanguard. This will incur a dealing fee to buy a new holding within the BMO JISA (they offer 10 funds, and the single holding in the CTF is not one of them) then a dealing fee to sell that investment and then an exit fee of £50+VAT. Total fees of £84 after VAT I think. Plus a £25 annual account fee on top, but that is applied pro rata so not as bad.
Is there a better way to do this? Vanguard do not accept CTF transfer in.
Any other provider I can use to get the CTF away from BMO, and then convert it to JISA which I can transfer out to Vanguard?
Feels a bit wrong paying this much to move this investment out, but I am stuck if I don't as the rules do not allow me to open any JISA for my son otherwise.

I convinced my 2 daughter in-laws to move my 3 grandkids out of foresters CTF and opened them a JISA at Coventry Building Society now paying 3.6%

ForumUser7

MikeJXE said:

Im_A_Mouse_In_Need said:

I have a CTF in my son's name. It's a stakeholder shares account, current value £400
I want to open a JISA with Vanguard. This is not allowed this while there is a CTF in his name.
I can convert the CTF to a JISA with BMO and transfer the new JISA to Vanguard. This will incur a dealing fee to buy a new holding within the BMO JISA (they offer 10 funds, and the single holding in the CTF is not one of them) then a dealing fee to sell that investment and then an exit fee of £50+VAT. Total fees of £84 after VAT I think. Plus a £25 annual account fee on top, but that is applied pro rata so not as bad.
Is there a better way to do this? Vanguard do not accept CTF transfer in.
Any other provider I can use to get the CTF away from BMO, and then convert it to JISA which I can transfer out to Vanguard?
Feels a bit wrong paying this much to move this investment out, but I am stuck if I don't as the rules do not allow me to open any JISA for my son otherwise.

I convinced my 2 daughter in-laws to move my 3 grandkids out of foresters CTF and opened them a JISA at Coventry Building Society now paying 3.6%

Since 6th Jan Coventry BS paying 3.8% I think