Moving money from CTF to a LISA

tootingbec

Hi, my daughter has just turned 18 and has £9,700 in her CTF. She would like to open a LISA but we’re aware that she can only put £4k into a year, so just want to check the best way of doing this.
would she be best to transfer £4k out of her CTF into a LISA and put the remaining balance into a normal ISA now (then after April or whenever she could withdraw another £4K from the normal ISA without getting penalties but preferably in the 25/26 tax year to get the following years bonus). She is also planning to save £250 a month so I’m guessing this would be best put into the normal ISA and then each tax year just transfer out the £4k into the LISA assuming she can get a fairly flexible ISA? 

Also do you think the money box 5% for year one is better than the 4.3% Tembo one? And can you move your LISA later on down the line to a different provider?

Thank you for any help in advance.

eskbanker

https://www.moneysavingexpert.com/savings/maturing-child-trust-fund/ suggests that maturing CTFs are converted to standard adult ISAs (cash or S&S as applicable), and once there, she can transfer £4K per tax year into a LISA.