CTF Child Trust Fund transfer

SBK220

Hi, I was told by the bank that transferring the money to a junior isa for my 16 yr old son would mean closing the CTF and that I am not allowed to do that until he’s 18 … I thought I could do that now…

RobinhoodSavings

You can transfer a CTF to a JISA. Try Coventry BS it’s currently 4%. 

SBK220

Thank you, can I transfer all the money from this CTF to a Junior ISA even though my son is 16? The bank told me yesterday that I couldn’t because it would mean closing this CTF, can a bank make their own rules? I am so confused 

ForumUser7

SBK220 said:

Thank you, can I transfer all the money from this CTF to a Junior ISA even though my son is 16? The bank told me yesterday that I couldn’t because it would mean closing this CTF, can a bank make their own rules? I am so confused 

The bank has misinformed you - you can transfer the CTF into a junior ISA with a new provider.

IIRC, you need to approach the new provider to request this, and they sort it all out

MX5huggy

No they can’t. But they can have misinformed staff or you can ask the wrong question. At 16 the child CAN take control of a CTF (but not get the money) so there’s the first possibility of confusion the staff may believe that the child has control not you. You can’t “close” the CTF only transfer it, more confusion. 

To transfer a CTF to JISA you do it by contacting the new organisation, not all JISA accounts allow CTF transfers in. For example I used Hargreaves Lansdown because Fidelity don’t do them. Start the transaction that way. 

SBK220

Thank you,I was told that transferring the money currently on the CTF would mean the account is closed and that was not allowed until my child is 18. 

Alexland

Also under the rules any CTF must be transfered in full to the new JISA.

xylophone

Transfer from CTF to JISA is permitted although not all providers will accept such a transfer.

https://www.gov.uk/guidance/transfer-of-a-child-trust-fund-or-junior-isa-if-youre-an-isa-manager

Transfers may be made between CTF providers and JISA managers, or investments in a CTF may be transferred from a CTF to a JISA (cash or stocks and shares) with the same institution. A CTF may be transferred even if - at the time that the transfer is made - the child would not be eligible for a JISA, for example because they are no longer resident in the UK.

Coventry Building Society does and currently offers the best interest rate generally available.

https://www.coventrybuildingsociety.co.uk/member/savings/childrens-accounts.html

You will need to contact  Coventry BS to request them to arrange the transfer in.

ForumUser7

Coventry BS JISA -> 4.15 effective 4th April 2023