A Child Trust Fund is a savings account that was available for children born between 1 September 2002 and 2 January 2011. Junior ISAs have since replaced Child Trust Funds, and while holders of Child Trust Fund accounts can keep their accounts open and continue to pay in, some choose to transfer a Child Trust Fund to a Junior ISA.
A Junior ISA with GoHenry comes with a range of potential benefits and could be a good way of building a financial nest egg for your children. Read on to learn more about how to transfer a Child Trust Fund to Junior ISA.
Capital in a Stocks & Shares Junior ISA is at risk; the value of your investment can go down as well as up. Tax treatment depends on your individual circumstances and may be subject to change.
Can I transfer a Child Trust Fund to a Junior ISA?
You can transfer a Child Trust Fund to a Junior ISA. However, it's not possible to have a Child Trust Fund and a Junior ISA simultaneously. That means you'll have to transfer the full amount from the Child Trust Fund and then close the account. Only the registered contact of the Child Trust Fund can request the transfer of the account, and this person must also be the registered contact of the new Junior ISA. If the contact details don't match across the two accounts, the Child Trust Fund provider may delay the transfer.
Should I transfer a Child Trust Fund to a Junior ISA?
You don't have to transfer a Child Trust Fund to a Junior ISA, but a Junior ISA could offer advantages in the long term. As Money Helper states, you'll generally have a greater choice of benefits with a Junior ISA; typically, these range from lower annual fund management charges to a higher interest rate. However, it's important to remember that you can't transfer back to a Child Trust Fund after switching to a Junior ISA. Investments in a Junior ISA can also go down in value as well as up.
For many parents, opening a Junior ISA for their children can also be a way of helping their kids learn more about money and the potential benefits of saving and investing. The latest CBI Economics analysis shows that adults who missed out on learning about money management in childhood often save less and are more likely to get into debt.
How to transfer a Child Trust Fund to a Junior ISA
It is easy to transfer a Child Trust Fund to a Junior ISA with GoHenry in the GoHenry app. It's free to transfer a Child Trust Fund to GoHenry, and you can get started with just £1. Simply tell GoHenry who the Child Trust Fund provider is, and we'll take care of the rest. You can visit the HMRC website to find out where the Child Trust Fund is held if you're not sure.
Capital in a Stocks & Shares Junior ISA is at risk. The value of your investment can go down as well as up. Tax treatment depends on your individual circumstances and may be subject to change.
For informational purposes only.
The information provided is not intended to be investment, tax or legal advice - nor does it claim to be comprehensive. Speak to a professional, if you're unsure about whether investing is right for you. We do not endorse any third parties referenced.
Junior ISA rules and T&Cs apply. Investment services provided by gohenry Family Finance Limited, an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority: (FRN: 574048). 6958