ISA FOR SON AGED 12

aayush

hI 
I need to open an ISA for my  son aged 12 not sure which is the best and who with and with cheap cost and what amount you can put have in and length term 

Albermarle

Top junior ISAs: 2.4% children's ISA tax free - MSE (moneysavingexpert.com)

refluxer

If he is 12, won't he have a Child Trust Fund ? If so, you would need to transfer it into a Junior ISA as he can't have both

https://www.gov.uk/child-trust-funds

If you're not sure, have a read of this article :

https://www.theguardian.com/money/2018/aug/25/child-trust-fund-savings-lost-money-claim

refluxer

MSE's guide to Junior ISAs is here : https://www.moneysavingexpert.com/savings/junior-isa/

You can choose a Junior Cash ISA, a Junior Stocks & Shares ISA or you could have one of each.

You can pay in up to £9000 every tax year and your son will get the option to control the account from the age of 16 and automatic access to the money at the age of 18.

aayush

Hi
which bank take on CTF or will I need to close the CTF and use the money and top with my money to open JNR ISA 
Which best cash or shares option 

refluxer

So he definitely has a Child Trust Fund ? Is it a Cash CTF or Stocks & Shares CTF ? If it's Cash, then what is the current interest rate ? It's likely to be less than the current best Junior Cash ISA rates and therefore a transfer would be worthwhile, but you need to check.

If your son has a Cash CTF and you want to open a Junior Cash ISA, you need to choose a provider that allows transfers of one to the other - this should be stated in the Junior ISA product info and T&Cs. The top-paying Junior Cash ISA is currently with the Family BS and they don't allow transfers from a CTF, but the 2nd and 3rd best options (Coventry BS and Tesco Bank) do.

You don't close the CTF (you can't anyway, as it's not your money) - you apply for the Junior Cash ISA and request the transfer as part of the application process. The new provider will then deal with the CTF provider on your behalf - you shouldn't need to contact the CTF provider at all.

I transferred a Nationwide Cash CTF to a Tesco Junior Cash ISA last year without any issues - the transfer process can take many weeks though, so you have to be patient and be prepared for the fact that the funds may 'disappear' for a while mid-transfer, as the transfer often involves cheques. I chose Tesco because they are one of the few Junior Cash ISA providers that allow online access - most others are by branch or post.

If you currently have a Stocks & Shares CTF and want to transfer to a Stocks & Shares Junior ISA, then I'm afraid I can't comment on that as I don't have that type of account for my kids - hopefully someone more knowledgeable can advise. 

As for which is best, you should make your decision based on your attitude to risk and the age of your son - see no.5 on the Nine Junior ISA Need-To-Knows here. Note that you can have one of each if you want, but the yearly £9k limit will be shared between them.