child trust fund

blondbit1973

hi we currently have an account with rbs stakeholder for trust fund she will b 14 this year so do we need to transfer over to an isa account for better interest

eskbanker

You don't need to transfer anything but many have decided to do so as it's generally worth it to have the money in current products rather than obsolete ones.

Read up on the options open to you at:
https://www.moneysavingexpert.com/savings/child-trust-fund-vouchers/
https://www.moneysavingexpert.com/savings/junior-isa/

xylophone

rbs stakeholder for trust fund

You want to transfer the stocks and shares CTF to a cash JISA?


The transfer will have to go as cash so the shares in RBS CTF will be sold before transfer.

You would ask Coventry to arrange the transfer.

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

you can transfer in junior ISA savings or Child Trust Fund savings from another bank or building society

blondbit1973

thanx it is currenlty worth around £3.200 so would she recieve that amount

blondbit1973

thanx im trying to find the best one to transfer to for better savings its in a rbs stakeholder account at moment and currentley worth around £3,200

eskbanker

What are your conclusions after reading the articles linked above?

xylophone

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

Highest rate on offer for a cash JISA is 3.6% from the Coventry.

Lyncj01

Hi - I transferred my twins (now 16) CTF over to Hargreaves Lansdown Junior Stocks & Shares ISA account. If you go onto their site it's easy to follow the process for transferring a CTF. I then chose 3 funds and told HL which one's I wanted to split the money into. I invest a further £25 a month each and move across birthday money etc. As I don't expect them to access the money for a while (and I transferred it as soon as I could) I believe this is a better option than the paltry interest rate accounts.

eskbanker

Lyncj01 wrote: »

Hi - I transferred my twins (now 16) CTF over to Hargreaves Lansdown Junior Stocks & Shares ISA account. If you go onto their site it's easy to follow the process for transferring a CTF. I then chose 3 funds and told HL which one's I wanted to split the money into. I invest a further £25 a month each and move across birthday money etc. As I don't expect them to access the money for a while (and I transferred it as soon as I could) I believe this is a better option than the paltry interest rate accounts.

Conventional wisdom would be that JISAs for teenagers would be better in cash form rather than S&S, given the potential for losses over what is only a short time before they have control of the money. You might not expect them to access the money for a while but it's their call in less than two years, so you may effectively be taking the decision out of their hands by choosing S&S, where there could be capital losses at inconvenient times for them.

The MSE JISA article says much the same thing:

Should I save or invest?

There's no easy way to decide, and no right or wrong answer, it's all about your attitude to risk – and also how old your child is.

The younger they are, the more likely investing will beat saving, as over longer periods the stock market tends to outperform cash. Yet there's no guarantee. If your child is close to 18, you're more at risk of the vagaries of the stock market if they plan to withdraw it straight away, as they could incur a big loss if investments have tanked.

Lyncj01

Good point - the money will have been in a S&S ISA for 5 years before they can get their hands on it. I guess that's not 'long term'. They don't know about it and I have no intention of telling them (unless they want to set their own account up in which case I'd need to come clean!). As they will be heading off to Uni I doubt they will have any of their own savings for a while. I know we need to be teaching our kids about money etc etc but I'm going to keep squirrelling for them till they really need it.

cloud_dog

Lyncj01 wrote: »

Good point - the money will have been in a S&S ISA for 5 years before they can get their hands on it. I guess that's not 'long term'. They don't know about it and I have no intention of telling them (unless they want to set their own account up in which case I'd need to come clean!). As they will be heading off to Uni I doubt they will have any of their own savings for a while. I know we need to be teaching our kids about money etc etc but I'm going to keep squirrelling for them till they really need it.

They will be contacted at age 16 to take control of the account, although not accessible until 18.