CTF Transfer

armchaireconomist

Hello,


My little brother currently has a CTF with Scottish Widows which charges 1.5% annually and is performing well below baserate.


I'd like to move this into a junior stocks & shares ISA for him, is there any real benefit to leaving it as a CTF?


I'm considering placing it in VLS80 w/ HL which should work out around 0.69% and perform far better. He was one of the lucky ones the government handed free money to so hoping with some action now I can provide some real growth for his future.


Is there anything I should be wary of? Thanks in advance.

Mogley

I transferred my children's CTF to S&S JISA last year. I took the lazy option and transferred from L&G CTF to L&G S&S JISA. I took this option to start with to take advantage of the lower charges with the intention to review my provider options at the end of the tax year. The way I saw it was there is more competition in the S&S JISA market and hence lower charges and more choice of funds. The only downside I could see was that the minimum monthly payments tend to be higher. This is no bad thing though as it is encouraging you to save more for your children.

Reaper

1.5% was the maximum they were allowed to charge, if you have had poor performance too then there is no reason to stay.

I'm not sure Scottish Widows sold it directly, it's more likely you got it through the Children's Mutual (now owned by Foresters) who used them as fund managers.

P.S. you say it's for your brother. It will be the parents who administer the CTF so they will have to do the move unless you have unusual legal circumstances.

xylophone

And see https://forums.moneysavingexpert.com/discussion/comment/70479762#Comment_70479762