Transferring a Child Trust Fund to a Junior ISA
Child Trust Funds can now be transferred to Junior ISAs if parents/guardians choose to. This is great news for the millions of children out there with Child Trust Funds who couldn't previously open and enjoy the benefits of Junior ISAs.
Child Trust Funds often have higher charges and less choice than Junior ISAs
Junior ISAs were launched to succeed Child Trust Funds, so in reality, they're similar accounts. However, Child Trust Funds often have higher charges and less choice than Junior ISAs. When deciding whether to transfer a Child Trust Fund to a Junior ISA, you must look very carefully at the differences between the accounts in terms of both price and features. Fixed-fee Stocks & Shares Junior ISAs like ours are often cheaper than Child Trust Funds with percentage-based fees, however this will depend on how much is in the account. Please note, we do not offer Cash Junior ISAs. With regards to differing features, a good example is that CTF annual allowances run from your child's birthday, whereas Junior ISA allowances run from the start of the tax year (April 6). Compare our child accounts to find out which suits you better.
You could save money by transferring to a Stocks & Shares Junior ISA with us
If you'd like to choose and manage your child's investments as you see fit, our DIY Junior ISA could suit you. There's a wide investment choice and a monthly admin fee of just £1.00 +VAT, with dealing commission from £7.50 per deal. If you'd like your child's investments to be managed by experts, our Ready-made Junior ISA is a hassle-free package with no monthly admin fees or dealing commission!
When transferring a Child Trust Fund to one of our Stocks & Shares Junior ISAs:
- Your child's investments won't need to be sold and repurchased as part of the transfer; therefore there is no chance of losing any income or growth whilst the transfer is completed. If your Child Trust Fund is held with another broker, this will depend on their transfer policy.
- Your customer reference number, account number and sign-in details will remain the same (assuming you are transferring from a Child Trust Fund held with us).