CTF Stakeholder - options

trickyUK_2

I have a CTF Stakeholder set up for my daughter from when she was born in 2006. There is a reasonable amount of money in there now, but I am wondering what my options are, if any.

There is some suggestion on this forum that it might be worth transferring to a savings account (3% or so). I didn't even realise that was possible.

It also appears that from April 2015, I should be able transfer the total value to a Junior ISA, which I imagine would perform better than the CTF I have now.

Should I sit tight and wait for April 2015 in this case? I am not even sure what question to ask of Family Investments whom I have the CTF with to know if it is worthwhile switching.

xylophone

There is some suggestion on this forum that it might be worth transferring to a savings account (3% or so). I didn't even realise that was possible.

You would have to decide whether it was worth switching from stocks and shares to cash but at all events could only do so within the CTF.

https://www.gov.uk/child-trust-funds/managing-the-account

The subscription limit increased to £4000 on 1 July.

The JISA is more flexible than the CTF - it might well be better not to make any move until the CTF can be switched to JISA.

https://www.gov.uk/government/news/government-to-allow-child-trust-funds-to-transfer-to-junior-isas

bowlhead99

trickyUK wrote: »

There is some suggestion on this forum that it might be worth transferring to a savings account (3% or so). I didn't even realise that was possible.

I think the suggestion was probably only that if you had a CTF or JISA invested in just a cash product, you might prefer to put new contributions into regular savings or other non ISA, non ctf cash products, either in your name or the child's name, where if you shop around you might get a better return than what you see on cash Jisas or cash Ctfs.

However the idea of both those products is they have favourable tax treatment and therefore some restrictions on withdrawal while child remains a child, so it doesn't help your existing assets because you can't get at them, in most situations.

Also, while 3% p.a. might beat cash CTFs or cash Jisas, it is unlikely to beat the returns from stocks and shares CTFs or S&S Jisas over next 10+ years. Of course, it might... How much has your existing stakeholder one returned?

It also appears that from April 2015, I should be able transfer the total value to a Junior ISA, which I imagine would perform better than the CTF I have now.

In theory when Jisas open up to former CTF investors, those investors will buying a product which is naturally more competitive as it has many more customers (or prospective customers). This is bound to be good news for costs and expenses and product range.

Can I ask, what is it that's wrong with your current CTF?

trickyUK_2

bowlhead99 wrote: »

How much has your existing stakeholder one returned?

I don't even know how to answer that. In 2013 I 'gained' the same as what I put in (ie I put in 1800 in that year and at the end, the pot was worth 1800 more than the existing balance plus my contributions). The previous year I lost a few hundred. the previous couple of years I gained a few hundred.