CTFs can be converted to Junior ISAs

Looby77

CTF - JISA It is nearly April 2015 and I can't find any helpful rules about the switch. I went to my local Halifax and they have not got a clue?

xylophone

https://forums.moneysavingexpert.com/discussion/comment/67981442#Comment_67981442

See post 11.

doggychops

My daughter has a trust fund with a bank, however, the only ISA this bank offers is a stocks and shares one, not a cash one.

I know very little about this type of thing so ask for some advice..

Is this stocks and shares ISA worth having?
If we want a cash ISA (which we know slightly more about) can we withdraw the money and invest it with another bank or building society.

Apologies for being a tad dim.

Thanks for any help.

Biggles

doggychops wrote: »

My daughter has a trust fund with a bank, however, the only ISA this bank offers is a stocks and shares one, not a cash one.

I know very little about this type of thing so ask for some advice..

Is this stocks and shares ISA worth having?

For a child, if you are looking at a timescale of up to 18 years, I see no point in having a cash ISA, I would only ever go for a S&S ISA. The only question, of course, is which one.

doggychops

Biggles wrote: »

For a child, if you are looking at a timescale of up to 18 years, I see no point in having a cash ISA, I would only ever go for a S&S ISA. The only question, of course, is which one.

Our daughter has just turned 5. So another 13 years or so of investment. I am very naive regarding finances by my own admission which is why I seek advice.
I don't really understand the idea of what S&S ISA would be better than any other. Should we simplify things and just remain with the current provider?

Reaper

Over the long term the stock market (which a S&S ISA invests in) tends to do better than savings accounts. I would define 13 years as long term.

Over that time you can expect a couple of periods of exceptional performance and a couple of stock market crashes.

The crashes are not a problem unless they happen just before you want to spend the money.

Biggles

A cash ISA will (probably) do slightly better than inflation over 13 years. And to do even that, you may have to be proactive, ie keep changing ISA providers to get a decent interest rate.

A S&S ISA will (probably) do very significantly better than inflation over that period of time. I started investment trusts for my grandchildren three years ago and the first one has already almost doubled.

Some reading matter like this might whet your appetite (or scare you off) http://www.fandc.com/uk/private-investors/savings-plans/savings-plans-range/junior-isa/

doggychops

ok folks..

I think you have made it clear enough for us as far as what is the better option.

As for making it work to its optimum, I suppose I will learn as I go along (or come back on here and ask you again)

Many Thanks for the help.

xylophone

My daughter has a trust fund with a bank,

Do you mean that your child currently has a CTF with a bank?

You want to transfer this to a JISA?

Remember that the JISA can be split between stocks and shares and cash if you wish.

See https://www.gov.uk/junior-individual-savings-accounts/overview

Re cash JISA http://www.moneysavingexpert.com/savings/junior-isa

Re stocks and shares JISA http://www.thisismoney.co.uk/money/diyinvesting/article-2478987/Five-best-funds-childs-Junior-Isa--tips-picking-winner.html

You can go self select Charles Stanley, Hargreaves Lansdown, Fidelity etc or choose a plan ...examples http://www.moneysupermarket.com/savings/junior-isas/