Junior cash ISA maturing & HTB ISA

PollyWatkins

I was planning to take out a Help to Buy ISA for my son when his Coventry Junior Cash ISA matures next week, when he becomes 18. I was shocked to hear yesterday that the Junior ISA turns into a Matured Cash ISA, which he has to apply for. Coventry will not release his money from the Junior ISA unless it is in the Matured ISA.
Can he still take out a new Help to Buy ISA next week, even though he has also officially taken out an ISA with Coventry? Will the Coventry change simply count as a transfer.

I will be furious with Coventry BS if this ruling means that my son cannot get the HTB ISA. It was not at all clear at all when we took out the Junior Cash ISA with Coventry BS that he could not have his money when he became 18, and that he would have to take out another ISA with them in order to get his money.

Hope this is clear! My question is, can he apply for the HTB ISA once he has withdrawn his money and closed the new ISA?
Thanks

PollyWatkins

I rang the Coventry BS yesterday and spent over an hour on the phone to them, speaking to the separate staff members. Each one had a different understanding of the Coventry rules, despite each going off to ask supervisors. This is why I am asking here as the Coventry are not giving a clear answer. Thanks

eskbanker

Probably worth checking the Ts & Cs of his specific JISA but for the current version it seems clear that the product is automatically converted on the day:

On the child’s 18th birthday, we’ll convert the account to a cash ISA (variable interest rate, easy access) in the child’s name only. They’ll be able to access their money and/or keep saving if they want to.

The easy access status of the new account should mean that withdrawals can be made that day or perhaps the day after.

In any case, his ability to open a HTB ISA isn't affected by any such transfer of prior contributions, so he can open one now, without even having to wait until he's 18 (they're available from age 16). Having said that, it'll probably be worth waiting until at least Friday, to give the widest window for first month funding....

PollyWatkins

Many thanks for your quick reply and reassurance. What is confusing about he Coventry form that my son has to fill out - that three separate Coventry BS staff members could not explain either - is that it is an application to take out a cash ISA, and no mention of the word transfer. Two of the three Coventry people said to leave entire sections of the form blank, even though it does not say this on the form.
I have been told to send am them the application form for the cash ISA along with a letter asking it to be closed the same day and funds withdrawn! It has been shocking how the Coventry make it difficult for one to access the funds, as the form does not include an option for this, so I would never use them again.
But thanks again for your help.