One Family CTF to a JISA?

Pats51

Hello everyone. Just read a good article in The Times about how expensive the fees are on CTFs and suggests transferring to a JISA. Wanted to get a second opinion as I have three children with CTFs with One Family. Have embarrassingly never bothered to check the fees, and have been paying in £30 per month per child for all their lives (now 18, 16 and 11). The 18 yo needs to transfer to something like a LISA (I think) but not sure what to do with the other two. The 16 yo’s is worth £8340 and the 11 yo’s is worth £4720. Shall I transfer to JISA? The Times suggests Fidelity JISA with no platform or buying/selling fees. Thanks. 

Albermarle

For the 18yo, they can take all the money out OR take some of the money out and reinvest the rest OR reinvest it all.

A LISA ( lifetime ISA) will have 25% added to all new contributions and this bonus can be kept if the LISA is used for purchasing a first time buyer house. Max that can be added each year is £4K .

A LISA can be a cash LISA, which will earn a small amount of interest, but the money is safe.. A LISA can also be a Stocks and shares LISA. Here the money will go up and down but you would hope for some growth in the long term.

Lifetime ISA (LISA): how they work & best buys - Money Saving Expert

A Stocks and shares ISA, is just an investment account . There are no bonuses but also no restrictions on how you use the money.

Stocks & shares ISAs: find the best platform - MSE (moneysavingexpert.com)

All investments should be seen in a medium to long term time frame( means minimum 5 years, preferably 10 ). If it is likely that the money from the CTF will be needed earlier, then best to stick to savings type accounts.
Investing in stocks for beginners: how to get started - MSE (moneysavingexpert.com)


The 1.1% fee for the One Family products, is not very competitive, but not outrageous either and for these relatively modest sums then the fees will not have that much impact.

cloud_dog

Pats51 said:

Hello everyone. Just read a good article in The Times about how expensive the fees are on CTFs and suggests transferring to a JISA. Wanted to get a second opinion as I have three children with CTFs with One Family. Have embarrassingly never bothered to check the fees, and have been paying in £30 per month per child for all their lives (now 18, 16 and 11). The 18 yo needs to transfer to something like a LISA (I think) but not sure what to do with the other two. The 16 yo’s is worth £8340 and the 11 yo’s is worth £4720. Shall I transfer to JISA? The Times suggests Fidelity JISA with no platform or buying/selling fees. Thanks. 

For the 18yo, you (they) will need to jump through the appropriate hoops in order for Family FS to confirm their identify before you can do anything with it:

https://www.onefamily.com/child-trust-fund/confirming-your-identity/

For the other two, Fidelity would be the logical end point based on costs, and assuming you are comfortable with picking an investment fund for the two?

Last I looked Fidelity did not accept direct CTF in to JISA transfers, only JISA to JISA transfers.  I know Coventry BS accept CTF to JISA, so you could transfer it as cash in to the Coventry BS savings JISA and then transfer it on in to Fidelity.  Bit of a faff, but hey ho.

MX5huggy

Transferring a CTF to a JISA using Hargreaves Lansdown was a fairly painless process. I was then going to transfer to Fidelity but not got round to it yet.