Junior ISAs


#21

I read the bit that if you take out before 5 years they would charge you £50, having looked further into Scottish Friendly even when child reaches 18 and withdraws it all they will be charged £50, so yeah it is an insult, when they charge yearly 1.5% too.


#22

They cap the fees at £375 @ Vanguard so I would guess that if you started with £10,000 over 5 years you’d be paying £1,875, you also from my understanding have to pay in £100 a month for me that is £200 a month as 2 kids :joy:


(Sendu Bala) #23

The fee cap doesn’t mean you pay £375 each year. It means that’s the maximum you’d pay, if 0.15% of your portfolio value was greater than £375. With £10,000 in, it won’t be. Like I said, you’d be paying a little over £75, not £1875! You won’t reach the fee cap even with £100,000 in, so I think with the JISA limits it’s impossible to ever reach the cap.

For the automated regular investment you’re right; the minimum is £100/month. But I can’t see anything stopping you investing less each month manually (transfer money in from you bank account, manually invest it). I haven’t tried investing small amounts though, so worth asking them if they have a minimum buy amount on their funds. Their FAQ doesn’t say they do.

(Charles Stanley, by comparison, had a minimum buy of £500 on funds, unless you set a regular investment, in which case the minimum dropped.)


#24

Ok cheers this is all new to me, only remembered we had a CTF due to the community, so got the statement the other day, as wasn’t putting in over £300 a year to get an annual statement.

The difference in my kids funds are crazy, granted my boy started with £250 and my daughter £50 but there is £1100 difference in CTF’s.


#25

Email from Vanguard

Thank you for your query and interest in investing with Vanguard!

I understand that this amount may not be possible if you have more than one Junior ISA account. Whilst we do guide for an
amount of £100 per month, once you have completed the transfer, you are able to reduce this to an amount more appropriate for
your personal circumstances.

On a side note, in order to complete a transfer successfully all the information being transferred needs to be identical,
including the product type. Since the Child Trust Fund scheme is now closed, Vanguard doesn’t offer this product.

The good news is that you can still transfer your account over to Vanguard! Before doing so, you would have to contact your
current provider to convert your Child Trust Fund to a Junior ISA.

Once that is completed, you can apply to open a Junior ISA account with Vanguard and start the transfer process.


#26

@Sendu so based on the email from Vanguard, I need to transfer the CTF to a JISA before I can transfer it to JISA, so my thinking is this.

Transfer the CTF to Scottish Friendly add £50 get them to credit the joining bonus of £50 and then transfer to Vanguard?

Or would you suggest transfering internally @ foresters and just take the hit?
I also connot see earily exit fee only £17 if taken out after a year

Cheers

Stuart


(Sendu Bala) #27

At this point you’ll need to contact your existing provider to see if they do CTF to JISA conversions, and Scottish Friendly to see if they do JISA transfers in, and what fees would apply if you transferred out within the first year.

Note that it takes them up to 150 days to credit the £50 gift, after you’ve invested at least £50 in to one of their funds.

You will end up having to sell any purchased funds as part of the JISA transfer process, since Vanguard don’t offer those funds. My guess is that that would trigger the

If the child withdraws money before the end of 5 years, there will be a £50 deduction from the withdrawal value.

clause, so you will lose the £50 gift, making the exercise pointless. I’m sure this is deliberate to stop people essentially stealing £50 from them. But go ahead and clarify with them.

If it was me I’d just convert CTF->JISA with current provider, then do a current JISA-> Vanguard JISA transfer.


#28

No worries, I was just thinking as Scottish Friendly give you the £50 and it takes it back when you leave so fees would effectivly be 0, will call forresters tomorrow and see what early exit from them is.

Cheers for the info/help :wink:


Stocks and Shares
(Gavin) #29

Hi mate if u already have a junior isa with nationwide they wont let u open another


#30

I was initally put off Junior ISA as the money becomes theirs at 18…hear me out!

Don’t get me wrong, I want to encourage my boys (currently 2.5 yrs and 3 months) to be financially responsible in later life. I hope they grow up to be responsiblie, intelligent, amazing people who are savvy about finances etc.

I put a little away each month for them but I want to be in control of when they get it. I know if I was handed a large sum of money at 18 it would have been plundered on stupid gadets, playstation games and other c-rap.

When they are older I would want to show them how to save/invest/the value of money so I may look into a junior isa again that they can co-manage with me, eventually taking over responsbilitliy

In terms of life savings I would like to be in control of when they get that (thinking when buying first house, etc!)

Anyone else have these concerns lol :face_with_raised_eyebrow:?


(James Murray-Ferris) #31

I do actually share your concern with the management when his 18 but I intend to start having talks about it when they are 16.

In my head as well I’m going to offer them a deal of keep it in a locked savings account of some sort till you’re 21 and I’ll continue to put the £100 a month I put in lol