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.
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.
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.
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.