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  • FIRST POST
    • Lennon55dogs
    • By Lennon55dogs 11th Jan 18, 1:59 PM
    • 3Posts
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    Lennon55dogs
    CTF v Junior ISA v Normal Savings HELP!
    • #1
    • 11th Jan 18, 1:59 PM
    CTF v Junior ISA v Normal Savings HELP! 11th Jan 18 at 1:59 PM
    Please help!

    My mum has recently gifted my two children (14 years) with a large sum of money.

    They currently hold a CTF with OneFamily (one which was set up by the Government when they were born, however, this CTF is linked with stocks and shares, so can go up or down.

    I am looking at transferring this money that they already have, along with the money given to them by my mother, but don't know what to do with it??!!

    Should I transfer to a Junior ISA or should I just put it in a normal savings account?

    If I place the money in a normal saving account is my name is still attached to it as I wouldn't want to ever use this money and it will be my children's when they reach 18.

    I dont feel safe in placing it all in the CTF as I dont want to lose any money either.

    What would be the best option. The amount is just under 20k each

    Thanks
    Last edited by Lennon55dogs; 11-01-2018 at 2:06 PM. Reason: amending amount
Page 1
    • MallyGirl
    • By MallyGirl 11th Jan 18, 2:29 PM
    • 2,740 Posts
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    MallyGirl
    • #2
    • 11th Jan 18, 2:29 PM
    • #2
    • 11th Jan 18, 2:29 PM
    You can use a cash JISA - the rates are far better for kids cash options than us adults can hope to get.
    You open the account in their name (if under 16) and have yourself as the person who operates it. At 16 they can take over but at 18 it is theirs completely.
    My DD gets 2% on normal savings, 4.5% & 3.5% on regular savers and 3% on a cash JISA. She is too close to 18 for stocks and shares JISA and I would suggest yours are too. At 16 I will probably get her to open a HTB ISA as some of the other products will no longer be available to her.
    • Keep pedalling
    • By Keep pedalling 11th Jan 18, 2:36 PM
    • 5,098 Posts
    • 5,683 Thanks
    Keep pedalling
    • #3
    • 11th Jan 18, 2:36 PM
    • #3
    • 11th Jan 18, 2:36 PM
    The money was given to your children, so you should not put it in account in your own name.
    • Lennon55dogs
    • By Lennon55dogs 11th Jan 18, 3:59 PM
    • 3 Posts
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    Lennon55dogs
    • #4
    • 11th Jan 18, 3:59 PM
    • #4
    • 11th Jan 18, 3:59 PM
    Thank you Mallygirl

    Could you please recommend any accounts, as previously put I dont think I can use JISA as they need to put a large lump sum in it?

    Thinking a regular saver? would prefer a JISA, but think I cant put a large lump sum in in one go

    Thanks
    • Lennon55dogs
    • By Lennon55dogs 11th Jan 18, 4:04 PM
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    Lennon55dogs
    • #5
    • 11th Jan 18, 4:04 PM
    • #5
    • 11th Jan 18, 4:04 PM
    Also I am finding alot of the Childrens Savings Accounts have a limit to how much you can open the account with?
    • MallyGirl
    • By MallyGirl 11th Jan 18, 5:32 PM
    • 2,740 Posts
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    MallyGirl
    • #6
    • 11th Jan 18, 5:32 PM
    • #6
    • 11th Jan 18, 5:32 PM
    Thank you Mallygirl

    Could you please recommend any accounts, as previously put I dont think I can use JISA as they need to put a large lump sum in it?

    Thinking a regular saver? would prefer a JISA, but think I cant put a large lump sum in in one go

    Thanks
    Originally posted by Lennon55dogs
    I don't know of big entry criteria. With a JISA you can only add 4128 per tax year in total. So you could put 4k in by April 5th and another 4k after 6th April. My DD has one with Halifax - it used to give 6% if parent had an ISA there so I opened one with 1 and that same pound is still there today.
    You would still need to find a home for the other 12k each. You might need a few accounts to get the best deal.

    I found this info which might help:
    If your child has lots of savings, Nationwide's Smart Limited Access account pays 2.5% AER on up to 50,000.

    Its major drawback is that it only allows you to make one penalty-free withdrawal/year. Make any more and the rate drops, so if your child's likely to need frequent access, the other accounts in this guide may be better picks.
    • xylophone
    • By xylophone 11th Jan 18, 7:02 PM
    • 25,585 Posts
    • 15,115 Thanks
    xylophone
    • #7
    • 11th Jan 18, 7:02 PM
    • #7
    • 11th Jan 18, 7:02 PM
    You might make the full contribution for the CTF year, transfer to JISA and then make the full contribution for the current tax year


    See https://www.skintedmintedmum.co.uk/minted-blog/how-to-transfer-a-child-trust-fund-ctf-to-jisa-with-a-double-scoop-of-tax-allowance.html


    You can then transfer the CTF to JISA and make the full JISA contribution in this tax year.

    This will use 8256 per child.

    https://www.onefamily.com/savings-and-investments/children/junior-isa/

    This gives a stocks and shares element for each child with the potential for growth.

    JISA gives the opportunity for the child to hold both cash and stocks and shares.

    https://www.gov.uk/junior-individual-savings-accounts



    You can hold the balance in a savings account (under your control) in each child's name

    https://www.nationwide.co.uk/products/savings/smart-limited-access/features-and-benefits

    and then on April 6, contribute 4, 128 per child to a CASH JISA - the Coventry currently offers 3.5%.

    You can do the same in tax years 19/20 and 20/21.
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