Matured Child Trust fund to Cash ISA - which companies accept transfers as I thought they all did?

MoneyNow1

My son has just turned 18 so his Child Trust Fund with One Family has just matured. He was hoping to Open an Adult Cash ISA with Virgin Money and transfer the balance of his One Family matured CTF account but they don't accept transfers. Apparently, some others do but I would welcome some advice on who to try for best rates for transferring for 1 year to keep tax free benefit  of CTF and good interest. I thought you could transfer it to an adult ISA with all providers but that is obviously not the case.

refluxer

I'm not sure about Virgin Money specifically, but most (adult) cash ISA providers allow transfers in... from other adult ISAs at least - I'm not sure about CTFs.

Is it a 'Matured Stakeholder CTF' that he currently has ? If so then these T&Cs give all the maturity options, one of which is transferring to an alternative provider and this sounds like it proceeds exactly as any other adult ISA transfer would - ie. you contact the new provider, give them the CTF account details and they carry on the transfer for you, so that you retain the (tax-free) CTF/ISA status of the money. You'd obviously need to find a new provider who would accept such a transfer though, as they won't be obliged to. This may or may not be an issue - I don't know.

Note that if it is a Stocks & Shares CTF that those T&Cs state that once they receive a transfer instruction from a new provider, they sell your investment on the following working day, and issue a cheque to the new provider, so (a) you won't know the exact value until that happens and (b) the transfer could take a while as it won't be an online payment.

xylophone

See p5.

https://www.onefamily.com/assets/consumer/downloads/child-trust-fund/matured-stakeholder-ctf-terms-conditions.pdf

Your son could check the list and contact the preferred provider concerning transfer in.

https://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

cloud_dog

MoneyNow1 said:

My son has just turned 18 so his Child Trust Fund with One Family has just matured. He was hoping to Open an Adult Cash ISA with Virgin Money and transfer the balance of his One Family matured CTF account but they don't accept transfers. Apparently, some others do but I would welcome some advice on who to try for best rates for transferring for 1 year to keep tax free benefit  of CTF and good interest. I thought you could transfer it to an adult ISA with all providers but that is obviously not the case.

Coventry BS accept CTF transfers 

Fairy8

My Son turned 18 in January.  His provider moved his Stocks and Shares CTF into a Matured Child Trust Fund which he can't access or amend.  It has more than £20 K in it.  We have struggled to find a provider that will accept it as a whole transfer in to cash ISA.  The provider we are with only offers Stocks and shares ISA's.  We were initially trying to move it into Kent reliance - but after 2 months of passing my son from one call centre agent to another they said they would only take the current annual ISA allowance and he would have to leave the rest in the matured CTF.  It's currently losing money in this account and paying charges.
We are almost resigned to the fact he will have to move the matured ctf into a Stocks and Shares ISA with the current provider - pay 2 lots of fees - one to sell his CTF shares and second lot to buy the new ISA shares... and then be at the mercy of the market until April when he can hopefully move it.
Any suggestions?

cloud_dog

I appreciate the horse has bolted here but, Coventry BS would accept a Child Trust Fund in to a Junior ISA.  They may accept this 'matured' ISA in to an ISA.  You will need to check or try.

Alternatively, and I accept this isn't ideal, can you not simply withdraw the money from the matured ISA, and then do whatever you wish with it (using this years ISA allowance etc).

refluxer

Fairy8 said:

My Son turned 18 in January.  His provider moved his Stocks and Shares CTF into a Matured Child Trust Fund which he can't access or amend.  It has more than £20 K in it.  We have struggled to find a provider that will accept it as a whole transfer in to cash ISA.  The provider we are with only offers Stocks and shares ISA's.  We were initially trying to move it into Kent reliance - but after 2 months of passing my son from one call centre agent to another they said they would only take the current annual ISA allowance and he would have to leave the rest in the matured CTF.  It's currently losing money in this account and paying charges.
We are almost resigned to the fact he will have to move the matured ctf into a Stocks and Shares ISA with the current provider - pay 2 lots of fees - one to sell his CTF shares and second lot to buy the new ISA shares... and then be at the mercy of the market until April when he can hopefully move it.
Any suggestions?

Is your son going to be earning more than £18,570 a year in combined salary and savings interest ? If not, then the money would be better off out of a cash ISA and in a normal savings account anyway, where interest rates are generally higher. If his tax situation did change then he could obviously pay back into an adult ISA over 2 tax years, the majority of which would go back in the first installment by the sounds of it.

xylophone

His provider moved his Stocks and Shares CTF into a Matured Child Trust Fund which he can't access or amend.  

Which  financial institution is the provider?

I am at a loss to understand he can't access or amend.  

Why not?  What information is given in the maturity options pack from the provider?

xylophone

Another thought, transfer as cash to eg Hargreaves Lansdown and then transfer from there to an adult cash ISA if required?

https://www.hl.co.uk/investment-services/insights/child-trust-fund-is-your-child-owed-hundreds#:~:text=If you'd like to,filling out our application form.

https://www.ybs.co.uk/savings/isas-explained-transfers

Fairy8

Currently his matured CTF is with Columbia Threadneedle.  It's basically a frozen account.  He can't move the shares / change anything - unless he transfers it into an ISA. 

Fairy8

At current rate he has 4 yrs worth of ISA allowance (His Grandad put money into his CTF every year).  We can look at savings accounts - but in his 3rd yr of Uni he will hopefully be earning on his industrial placement.  So, we thought it would've been better to keep it in the tax free umbrella.  But not if it's going to cost multiple £K to do so.