Convert Child Trust Fund to Junior ISA Starts

Child Trust Fund to Junior ISA Conversion Starts.

The Deregulation Bill 2015 received Royal Asset and became law on 27th March 2015.

This means that regulations have now been passed to allow any Child Trust Fund (CTF) to be converted to a Junior ISA (JISA) with effect from 6 April 2015.

Junior ISAs v Child Trust Fund  CTF to JISA

• Greater Fund Choice
• Wider Investment Company Choice
• Lower fund charges
• Higher Cash JISA interest rates
• Automatic conversion to Adult ISA at age 18 to continue tax efficiemt savings without the need to cash in and start again.
• Tax Year 2015/16 JISA Allowance £4,080

Comment

It makes total sense to harmonise savings options for both adults and children and let's face it the free money give away under CTF was a failure and a total waste of tax payers money.  It has not encouraged saving by the masses, but we suspect the combination of Junior ISA and pensions for juniors may just do that.