Recommnedation - CTF Transfer to Junior ISA

aterry74

Hi,
I'd like to transfer my 12 year old sons stakeholder CTF to a Junior S&S ISA.
He is currently pay a 1.5% fee which I want to reduce as well as increasing the monthly payments.
I have read a lot of the guides ands posts on here including the money to the masses guide
In perfect world I would probably pick Fidelity, but they don't allow CTF transfers in, so does anyone have a recommendation for a S&S JISA that does allow transfer in?.
Thanks
Andrew

Alexland

Vanguard are the next cheapest at 0.15% but they don't support CTF transfers either.
Next best is probably AJ Bell Youinvest who have a very competent transfer department but charge 0.25% and £1.50 per fund trade which could be expensive if you are making monthly contributions.
https://www.youinvest.co.uk/investing-for-children/child-trust-fund-transfer-junior-isas
Once it's a JISA with AJB you could always transfer to Fidelity. But then when the child gets to 18 the Fidelity price goes up higher so if that's soon it might be better to onward transfer to Vanguard.

aterry74

Thanks - I hadn't considered the thought of transferring on once it's a JISA.
It's a bit frustrating that CTF transfers are limited to only a few organisations.

aterry74

Have you any view on Best Invest, they appear to be 0.4% annual charge but no fee on fund trades, this appears to be cheaper overall and I do intend to be making monthly contributions.

Alexland

aterry74 said:

Have you any view on Best Invest, they appear to be 0.4% annual charge but no fee on fund trades, this appears to be cheaper overall and I do intend to be making monthly contributions.

When compared to AJB it depends on the JISA valuation on if paying an extra 0.15% (0.40% - 0.25%) is cheaper or more expensive than paying £18 pa (£1.50 x 12) in trade fees. For a smaller JISA you are better on percentage fees. But then if you do only want to pay percentage fees (and don't want to transfer twice) then Charles Stanley Direct are 0.35% with no fund trading costs and accept CTFs

https://www.charles-stanley-direct.co.uk/Our_Services/JISA/transferring_your_jisa/

aterry74

So if I project forward to 18 based on contributions and assumed growth then yes, CSD work out slightly cheaper, but it is frightening how much I'll save using any of them based on the comparison to the CTF over the same period.
Thanks for your help.

Alexland

Remember to factor in the cost of the fund as the current 1.5% is probably an inclusive charge.

Coveredinbees!!!!

I'm in the same boat I have opened a S/S isa for my youngest but can't do the same for my eldest as she already has a child trust fund. It's very frustrating!!

jeetster

Interactive Investor accepts CTF transfers. I did this for two of my kids a year ago. This is really only worth it if you already have an account and plan to trade, as they have a £9.99/month fee (which includes 1 free trade credit pf £7.99 that lasts a couple of months, so net £2.99/month. But you can have any number of accounts including JISA's after this. Also, watch out for exit charges. I found this with BMO.

xylophone

You could always transfer  from CTF to a cash JISA and then on to a stocks and shares JISA of your choice?
https://www.coventrybuildingsociety.co.uk/consumer/product/savings/children/junior-cash-isa.html