Child S&S ISA eligibility

ChasingtheWelshdream

Evening All,

I have searched but haven't found an answer, and a couple of online enquiries to ISA providers haven't yet had a response either. I intend to call but haven't had a chance during office hours.

My two eldest children were eligible for CTFs, which were opened in 2008 and 2010. Apart from an initial lump sum to match the government bonus, we could only afford to contribute £5 per month.

My youngest was not eligible (born 2012) and last year I wanted to open something similar to put them all on an even keel. On the advice/suggestion of my bank (Santander), I opened a junior ISA for my youngest, and transferred the existing CTFs to ISAs so everything was in one place.

I have never saved into anything other than cash accounts and know absolutely nothing about stocks & shares. As such, the bank's advisers told me it would be simplest to have all cash ISAs, which I was happy with. We have continued the £5 each per month.

I am now in a position to contribute a little more to their future savings, only £10 a month each but still, it all helps.

I have had some leaflets recently and I would like to open an S&S ISA for each of the kids, as I believe they can each hold a cash and S&S ISA, to give the chance of a better return over the next few years.

However, the T&Cs of a couple of companies suggest my two eldest children are not eligible for a S&S ISA, as they had CTFs.

As these were converted from CTFs to cash ISAs, are they still ineligible for a S&S ISA now, even though the CTF no longer exists? I can't seem to find any specific answer.

I am ashamed to say I did not do any research into this before I went ahead with the transfer and am now worried I have lost the chance for 2 out of the three children.

Thank you in advance.

george4064

You can always transfer their cash ISAs to S&S ISAs.

Also, I would recommend you look elsewhere for S&S ISA and avoid banks (eg Santander). A good website to compare platforms is: https://monevator.com/compare-uk-cheapest-online-brokers/

Important to remember that cheapest doesn't always mean the best! For example Hargreaves Lansdown are at the more expensive side of things, but they have the best customer service and will be able to hand hold you through the process.

Personally I started my S&S ISA with Hargreaves Lansdown, and once I became confident enough with what I was doing I transferred it away to a different platform which was cheaper and better suited to my needs.

bowlhead99

However, the T&Cs of a couple of companies suggest my two eldest children are not eligible for a S&S ISA, as they had CTFs.

As these were converted from CTFs to cash ISAs, are they still ineligible for a S&S ISA now, even though the CTF no longer exists? I can't seem to find any specific answer.

No need to worry.
The rule is that if they are looking to open up a brand new account having not had a JISA before... they are only allowed to open one if they weren't eligible to have a CTF - because everyone who qualified for a CTF got one opened for them automatically and you can't have a CTF and JISA at the same time.

However in your case you are not really looking to open up a JISA account for the first time ever - you already have a JISA of the other type (cash) and now just want to have an S&S version too.

So the kids should be fine, all being existing cash JISA owners and all wanting to now open S&S ISAs too.

One other option is to just transfer the existing Cash JISAs into newS&S JISAs rather than keep two types of accounts going

ChasingtheWelshdream

Oh thank you both so much for replying, especially on a Sunday night!

George4064: That link looks very helpful and I will have a read. At the moment, I had a couple of leaflets in the post and realised I could spare a little more money. That's as far as I have got, so this will be good, thanks.

bowlhead99: I am indeed a worrier! :rotfl: As I have only ever had small cash savings, I have been wary of anything scary like stocks and shares where the money could disappear. But I also realise saving £60 each a year is not going to earn any interest to speak of. Hence I thought having both would be a safety net?

I am a bit embarrassed by talking about these very small amounts, but we will soon be in a position where we can contribute more regularly and I would like a good foundation to start from.

Thanks again for both of your help.

xylophone

You may find this helps

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

ChasingtheWelshdream

xylophone wrote: »

You may find this helps

https://moneytothemasses.com/quick-savings/parents/best-junior-stocks-and-shares-isa

Thank you, I will have a read 🙂

jimjames

ChasingtheWelshdream wrote: »

bowlhead99: I am indeed a worrier! :rotfl: As I have only ever had small cash savings, I have been wary of anything scary like stocks and shares where the money could disappear.

It's a common misconception that investment in stocks & Shares is like gambling or that your money could disappear. Choose a well balanced fund with FSCS protection rather than individual shares and this is unlikely to ever happen - or if it did then worrying about investments would be the last thing on your mind.

poppy10_2

jimjames wrote: »

It's a common misconception that investment in stocks & Shares is like gambling or that your money could disappear. Choose a well balanced fund with FSCS protection rather than individual shares and this is unlikely to ever happen - or if it did then worrying about investments would be the last thing on your mind.

Funds don't have FSCS protection
If the fund scheme gave you regulated advice and then went out of business then yes you can claim for up to the £85,000 limit but otherwise the FSCS is not applicable