child trust fund to ISA

sls630

MY son has 2 years left before his child trust fund pays out. would I be better transferring it to an ISA for him or leave it where it is, 

eskbanker

Much depends on what CTF it is and how it's performing, plus how much is involved, i.e. if it's a badly-performing CTF with plenty in it then a couple of years boost may be worth it....

xylophone

Is it in stocks and shares and you want to transfer to cash for a couple of years?
Or are you looking for a higher interest rate?
https://www.thisismoney.co.uk/money/saving/article-1583863/Best-savings-rates-Junior-Isas-children-s-accounts.html

kezzer94

I would be interested in hearing your advice my daughter has £3200 in a stocks and shares CTF, with 18 months left, we have lost £600 off value this year. I didn't know you could transfer to cash CTF

masonic

kezzer94 said:

I would be interested in hearing your advice my daughter has £3200 in a stocks and shares CTF, with 18 months left, we have lost £600 off value this year. I didn't know you could transfer to cash CTF

How recent is that valuation? Investments have recovered considerably since March/April, some are at all time highs again. Whether it would be appropriate to leave in S&S depends on when your daughter is likely to spend the money. You might also want to consider the risk of locking in a loss and not benefiting from a recovery in value. If transferring to cash, it would likely be better to convert to a JISA, since rates are generally higher.

Greggy62

My  grandson has £11,000 in stocks and shares with “One family” He 15years  old should we move to an Isa?  Also is there a charge for doing this 
thanks 

SweetPotatoPie

My daughters is also in One Family - by the time she is 18 it currently states that I will have paid in 4300 but that at best, it will be worth 3800. She is almost 16. I pay in 20 per month. 

I have looked at JISAs and it says that if you withdraw before 5 years there may be a fee? She will be 18 in 2 years and will need access to the money then. It’s very confusing. 

masonic

Greggy62 said:

My  grandson has £11,000 in stocks and shares with “One family” He 15years  old should we move to an Isa?  Also is there a charge for doing this 
thanks 

There may be a transfer fee, you'd need to check this. All providers must publish information about the fees that they charge.

SweetPotatoPie said:

My daughters is also in One Family - by the time she is 18 it currently states that I will have paid in 4300 but that at best, it will be worth 3800. She is almost 16. I pay in 20 per month. 

I have looked at JISAs and it says that if you withdraw before 5 years there may be a fee? She will be 18 in 2 years and will need access to the money then. It’s very confusing. 

If you are invested in some sort of With-profits fund then there could be a fee to exit, but that is not a good choice of investment to select. If she needs to access the money in 2 years, then she should opt for a cash JISA, for which there will be no exit fee once she turns 18.

xylophone

From

One Family

UK Investments Child Trust Fund

Transferring to another provider

To arrange to transfer you will need to contact the new provider.

Transfers to another provider must be made in full. On transferring to another provider, the child’s CTF account will close.

We will begin the transfer process when we receive a valid instruction from the new provider.

Any active Direct Debits will be cancelled. Any payments received after we have received the transfer instruction will not be invested. Instead, they will be held and transferred to the new provider. 

The child’s units will be sold and the CTF account closed on the working day after we receive the instruction. The transfer amount will be sent to the new provider within 4 working days of:

the day the units are sold; or

the day all payments have cleared;

whichever is later.

You can ask us to sell the units on a date later than we have specified above. Any such date should be clearly stated in the instruction from the new provider.

We will send you a final statement as at the date of transfer.

Alternatively, if you wish to keep the same choice of fund when you transfer your CTF account,you may be able to re-register it into the name of your new CTF Provider’s nominee account. This means that the funds will simply be moved to sit within your CTF account with your new provider. Contact us for more information. 

The above mentions transfer to another CTF but it will be the same for transfer to JISA.

Cash JISA interest rates here

https://moneyfacts.co.uk/isa/junior-isas/