Transfer of Child Trust Fund

D43

My head is spinning with this, so please forgive me for any of my misunderstandings, with misunderstandings from both institutions to add to it.

I had been led to believe that it was possible to transfer a Child Trust Fund (CTF) to a Junior ISA and it was just a case of filling in a form.

I have since been caught between the CTF provider (Foresters Financial) who refuses to provide a sort code and account number and will only pay out by cheque.

I have also subsequently discovered that the Junior Cash ISA I have opened won't take transfers in from stocks and shares CTF's, in spite of Foresters saying they have transferred many of their CTF's to Tesco.

So I appear to be caught in a conundrum which means that:
1. I can't have a Junior ISA until I close the Child Trust Fund;
2. I can't transfer the Child Trust Fund; and
2. I can't just close the Child Trust Fund and withdraw the funds.

I am less than convinced by the knowledge of the folk I've spoken to on the phone and seem to get conflicting messages from both sides.

Help!!!

pramsay13

I'm not sure about your exact situation but we changed from the CTF to a Junior ISA with the same provider and it all went smoothly.
Is that possible with Foresters?

cloud_dog

D43 wrote: »

So I appear to be caught in a conundrum which means that:
1. I can't have a Junior ISA until I close the Child Trust Fund;
2. I can't transfer the Child Trust Fund; and
2. I can't just close the Child Trust Fund and withdraw the funds.

I am less than convinced by the knowledge of the folk I've spoken to on the phone and seem to get conflicting messages from both sides.

Help!!!

Do you still hold investments in the CTF?

If yes, then this might be why you cannot transfer to Tesco JISA (???).

On the Forester CTF Transfer OUT form is there the option to sell or to transfer as cash?

I cannot see on the Tesco site any other reason why they would not accept the CTF transfer unless it wasn't in cash.

xylophone

On the Forester CTF Transfer OUT form is there the option to sell or to transfer as cash?

If they propose sending a cheque to the new provider (and this used to be a commonplace when transferring ISAs between providers) then it is clear that the investment is being encashed before transfer?

OP, why have you chosen Tesco as a JISA provider? Coventry pays 3.6% and accepts cheques.

https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html

Cancel the arrangement with Tesco and try Coventry?

AnotherJoe

D43 wrote: »

My head is spinning with this, so please forgive me for any of my misunderstandings, with misunderstandings from both institutions to add to it.

I had been led to believe that it was possible to transfer a Child Trust Fund (CTF) to a Junior ISA and it was just a case of filling in a form.

I have since been caught between the CTF provider (Foresters Financial) who refuses to provide a sort code and account number and will only pay out by cheque.

I have also subsequently discovered that the Junior Cash ISA I have opened won't take transfers in from stocks and shares CTF's, in spite of Foresters saying they have transferred many of their CTF's to Tesco.

So I appear to be caught in a conundrum which means that:
1. I can't have a Junior ISA until I close the Child Trust Fund;
2. I can't transfer the Child Trust Fund; and
2. I can't just close the Child Trust Fund and withdraw the funds.

I am less than convinced by the knowledge of the folk I've spoken to on the phone and seem to get conflicting messages from both sides.

Help!!!

Ive never done this process but are you barking up the wrong tree with regards to getting a sort code and account number?
I'd expect that you instruct the receiving scheme (Tesco ?) to transfer from Foresters,and they then deal with the technicalities.
Even if the investment within Forresters are currently funds rather than cash id expect them to convert to cash and then transfer that.
So, what actual process are you using to try and transfer. Do Tesco provide a form?

cloud_dog

xylophone wrote: »

If they propose sending a cheque to the new provider (and this used to be a commonplace when transferring ISAs between providers) then it is clear that the investment is being encashed before transfer?

Possibly. Additionally, in this electronic world might Tesco's not be geared up to receive a transfer as a cheque?

xylophone

Additionally, in this electronic world might Tesco's not be geared up to receive a transfer as a cheque?

It's possible.

Then the OP goes with Coventry who have no problem with cheques?

D43

Thanks everyone, these are really helpful responses. I chose Tesco because they had a favourable rate and I'd used their online banking previously. I agree that the confusion probably did arise because they weren't thinking of it being transferred as cash and they were adamant that they needed a sort code and account number and for me to complete the transfer form. I haven't put additional funds into the CTF for some years. I will go with the recommendation of Coventry and close the Tesco account first. I hope it's not really poor etiquette to respond to all posts in a single post, I'm just dashing out the door to meet a friend!

D43

Big thanks to all, issue is now resolved, I spoke to a very helpful woman at Coventry who was able to confirm they could accept transfers in and that the account reference for the CTF would suffice to do that. Happy days!

bonbon18

Hi,
My son also has a stocks and shares CTF with Foresters, can I just ask if they charged you for transferring to cash JISA with Coventry if so was it a reasonable charge?? I also have my head spinning with it all and just thought I would ask the question before going forward. Thank you in advance.

RaeSmith

I'm also struggling to transfer stocks and shares CTFs with Foresters to cash JISA with TSB. TSB's computer systems will not allow the accounts to be opened. They do not appear to have updated their systems since the Government announced they would allow CTF transfers to JISAs in 2015. TSB have said they can do it, but it seems to be taking ages, and they are not very good and updating me of the progress.