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How to transfer CTF to Junior ISA

(9 Posts)
tribpot Mon 02-Jan-17 13:34:04

I've been shopping around looking for a Junior ISA to replace my ds' CTF. I queried with Tesco via Twitter whether or not they accepted transfers in from CTFs. They said yes, but when I came to fill in the online application form, I had to declare that ds doesn't have a CTF. As he does, I could not proceed.

Today Tesco have told me they do not offer the facility to close the [CTF] account as part of the application process. You would need to go to a third party (either a bank or a company) that is able to close and extract funds from a CTF. I'm completely confused by this as I haven't read anything about some ISAs not offering a CTF closure process?

The obvious thing I guess is to transfer it from a CTF to a JISA with the current provider, and then move it at the start of the next financial year, but am I missing something? I've pointed out to Tesco that this is on their own community site.

Vixnixtrix1981 Tue 03-Jan-17 00:30:05

I transferred my son's ctf to the nationwide ISA. Can't remember how because I did so when I got the letter from ctf informing me there were changes (ie, they could access money at 13). I know it's possible to transfer but only if you have less than £4000 in the trust fund.

eightytwenty Tue 03-Jan-17 00:34:06

I've done it - will check Junior Isa provider's name. It was quite straightforward. Suspect the issue is that you're not allowed to have both.

tribpot Tue 03-Jan-17 07:16:51

Thanks both. Yes, I don't want to have both but I can't open the second whilst the first still exists, and I can only transfer the first into the second. Gargh.

tribpot Tue 03-Jan-17 12:10:55

Tesco have now further 'clarified':

CTFs can be transferred into Junior ISAs, but we require the CTF to be closed in order to facilitate the transfer. Closure of a CTF (and the extraction of the funds) is a service which we unfortunately are unable to provide.

I wonder what all this means! Well, I'm going to try my luck with Nationwide to see if they know how to do it.

tribpot Tue 03-Jan-17 12:31:42

Quick update for anyone else encountering this problem: it looks as if Nationwide can manage it.

MrsPnut Tue 03-Jan-17 12:33:44

The Halifax can too, we moved our daughter's as soon as it was possible.

toastymarshmallow Tue 03-Jan-17 12:40:13

So how do you get round the declaration on the application form then?

I need to change DD1s over, but the whole thing overwhelms me a bit. Is tesco the best that you have seen OP or do you bank with them already anyway?

tribpot Tue 03-Jan-17 12:45:57

I think the Tesco declaration is 'correct', in that that's what they mean. You cannot transfer in a CTF and therefore you mustn't have one if you want to apply.

Nationwide, on the other hand, appear to be able to transfer in a CTF so perhaps this is just a quirk of Tesco? I certainly won't be declaring that ds doesn't have a CTF when he does.

I chose Tesco because Moneysavingexpert recommends three banks for cash ISAs, Coventry, Tesco and Nationwide. Coventry has the best rate but doesn't allow online management, Tesco and Nationwide are the same. I already have various financial products with Tesco so thought I would go with them - but not after this shenanigan.

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