Our Chief Executive answers some of your Child Trust Fund questions
As a parent or guardian you can transfer your children’s CTF to a Junior ISA at any time. When the child’s 16 or over it’s their decision to transfer it.
Transferring a CTF to a Junior ISA is not a simple decision. You need to think about the risks and benefits of the CTF and the Junior ISA that you’re considering. If you leave it in the stakeholder CTF it’s invested in the stock market which, as we’ve seen recently can be quite volatile but can also offer the opportunity for superior returns.
Think carefully about your attitude to risk, how long it’s likely to be invested and whether the child is likely to draw the money out as soon as they turn 18 or leave it invested for longer. Don’t make a quick decision, talk to the providers about the CTF or Junior ISA to make sure that you understand what you are investing in.