ISA SavingsThe Government has finally confirmed that Child Trust Funds (CTF) will be permitted to transfer into Junior ISAs.

The confirmation had been expected to come in the recent Autumn statement, but was disappointingly omitted. However George Osbourne said the transfers to Junior ISAs would indeed be allowed, and we expect this to happen from April 2015.

Child Trust Funds were offered to children born between 1 September 2002 and 2 January 2011, and the Government made a starting contribution of £250.

Since then Junior ISAs came into force and the automatic Government contribution to the Child Trust Fund ceased. Though the move to create a Junior version of the very popular ISA product was a good one, those children left holding a Child Trust Fund were unable to open a Junior ISA. Children could only hold either a CTF or Junior ISA.

As well as the annoyance at not being able to access a popular product, it is also more complicated to operate this dual CTF/JISA regime. Being able to transfer CTFs to a Junior ISA will therefore simplify things for parents.

In addition the Junior ISA has been a more popular offering for providers as it sits well alongside the adult ISA. For that reason we see a lot more Junior ISA providers than there are Child Trust Fund providers. That means greater choice, which ultimately means better options and a better chance of investing successfully. Choosing the right options, just like any investment will require you to assess what it is you want and how much risk you are willing to take.

taking independent financial advice to help you decide on what best to do need not be expensive either. When investing for children there are normally smaller sums involved and so the scope for spending lots of money on advice is limited. Our low cost financial advice service could help you make the right choice.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on