JISA transfer to Kid's savings account

jmb1

Hi I'm unsure what best to do; our son is 12 and has a jisa with halifax paying 3.2% currently with 4k in it. I've read there perhaps isnt much advantage in an isa over a kids savings account which may pay more interest. I understand the money is locked away until he is 18 but not sure thats offering much of a benefit if a savings would pay more interest over the next 6 years and we just dont give him the details to access it! Can I transfer an isa into a savings account though, if it was a better solution? Or should i just keep the existing jisa?

eskbanker

jmb1 said:

I understand the money is locked away until he is 18

Exactly this - money in a JISA can't be accessed until 18, so there's no point in hypothesising about moving it outside the JISA wrapper when this simply isn't permitted.

You could transfer it to a better-paying JISA though....

https://www.moneysavingexpert.com/savings/junior-isa/

wmb194

jmb1 said:

Hi I'm unsure what best to do; our son is 12 and has a jisa with halifax paying 3.2% currently with 4k in it. I've read there perhaps isnt much advantage in an isa over a kids savings account which may pay more interest. I understand the money is locked away until he is 18 but not sure thats offering much of a benefit if a savings would pay more interest over the next 6 years and we just dont give him the details to access it! Can I transfer an isa into a savings account though, if it was a better solution? Or should i just keep the existing jisa?

You cannot access a Jisa so no, you cannot transfer it into a normal children's savings account. You could transfer it into a stocks and shares Jisa and invest it instead or to a better paying cash Jisa.

jmb1

Ok thanks for the info that at least decides that question. Out of curiosity, if we transfer, does it act like a bank switch, and transfer the regular payees (myself and father in law)? Or do we have to set up monthly payments again with the new bank?

eskbanker

jmb1 said:

Ok thanks for the info that at least decides that question. Out of curiosity, if we transfer, does it act like a bank switch, and transfer the regular payees (myself and father in law)? Or do we have to set up monthly payments again with the new bank?

There can't be any payees as such (i.e. recipients of payments) associated with a JISA, but if you're sending payments to one and transfer it to another provider, then you'd need to change your payment instructions manually - are you paying in via bank transfer/standing order, or direct debit, or debit card?

jmb1

yes sorry i meant us paying in. we pay by dd.