Disclaimer: Please note, this article was last reviewed in March 2025, but tax rules and ISA regulations can change. For the latest information, please check with HMRC or speak to a financial adviser who can help guide you.
If your child was born between September 2002 and January 2011, they may have a Child Trust Fund (CTF). This government scheme helped families to save for their children’s future. However, CTFs are no longer available, and have been replaced by Junior ISAs (JISAs) instead. A Junior ISA is a tax-efficient savings account that can hold cash, investments, or a combination of both.
Wondering what to do with your child’s funds? You have the option to transfer the money in your child’s trust fund into a . This guide explores the differences between each of these accounts, the benefits of transferring, and provides a step-by-step process on how to transfer an existing CTF to a JISA. Learn how you could boost your child’s savings to make their money work harder for them.
Transfer a CTF with another provider to us or transfer your Shepherds Friendly CTF to our Junior ISA to help build your child’s savings tax efficiently.
As of 6th April 2015 anyone with a CTF will be able to transfer it to a Junior ISA. There are several and very important differences, which you need to be aware of between the CTF and the Junior ISA. You can find them outlined below.
Differences between a CTF and a Junior ISA
Choosing the right savings plan for your child is important. While Child Trust Funds (CTFs) are no longer available, many children under 18 still hold them. You can transfer your child’s CTF to a Junior ISA (JISA), which often offers more investment choices and better flexibility.
The Shepherds Friendly JISA aims for steady growth over the long term. Your child’s money is invested in our With-Profits fund, where we apply a process called ‘smoothing’ to minimise the effect of market changes, with the aim to pay regular bonuses. This can be a good option for those looking for a medium to low-risk approach.
We’ve highlighted some key differences between Shepherds Friendly CTFs and Junior ISAs in the table below to help you decide, including annual charges, risk levels, and potential bonuses. Understanding these differences can help you determine whether transferring your child’s CTF to a JISA is the right move.
| Shepherds Friendly CTF | Shepherds Friendly JISA | ||
|---|---|---|---|
| Annual Charge | 1.5%pa | 1.5%pa | |
| Fund | L+G UK Index Trust | With-Profits | |
| Risk | Medium – high | Low – medium | |
| Bonuses | No | Yes |
Please note that the Shepherds Friendly Unit-linked Junior ISA is only available to current Shepherds Friendly CTF members.
Why transfer from a CTF to Junior ISA?
Child Trust Funds (CTFs) were introduced back in 2002 to encourage families to save for their children. While they were a great initiative at the time, CTFs have since been replaced by Junior ISAs (JISAs). This has left many parents wondering what to do with their child’s existing CTF.
The good news is that you have the option to transfer your child’s CTF to a JISA. This can be a good move for several reasons:
More investment choices: JISAs offer a much wider range of investment options than CTFs. This means you can choose investments that match your child’s future goals and your own risk tolerance.
- Simple savings: You can’t hold a CTF and JISA for the same child. However, transferring to a JISA may offer more convenient management options, such as easy online or app access.
- Easy to switch: Moving your child’s money from a CTF to a Junior ISA is a straightforward process.
- Choose to save or invest: Junior ISAs can be opened as a Cash JISA for a secure, low-risk option or a Stocks & Shares JISA for potentially higher returns.
- Potentially lower charges: You might find JISAs have lower fees than your current CTF, meaning your child’s money is working harder for them.
Plus, when your child turns 18, their Junior ISA automatically converts into an adult ISA, so they can carry on saving. Depending on the type of your child’s CTF, transferring it to a Junior ISA could potentially boost their savings for a head start in life.
How to transfer from CTF to Junior ISA
Ready to grow your child’s savings? Transferring their Child Trust Fund (CTF) to a Junior ISA (JISA) may be a smart move. Here’s a step-by-step guide to make the process simple:
Step one: Things to consider before you transfer a CTF
Before you start the transfer process, there are a few important things to remember:
- You can’t have both a CTF and a JISA for your child.
- Only the registered contact for the CTF can request a transfer.
- Transfers are permanent. Once you’ve transferred your child’s CTF to a JISA, you can’t reverse it.
Step two: Find your Child Trust Fund
To start the transfer, you’ll need your child’s CTF details handy. If you’re not sure where their CTF is held, don’t worry. You can find it for free on the HMRC website.
Read more detailed guidance on how to find a CTF.
Step three: Select your preferred Junior ISA provider
When choosing a JISA provider, consider factors like:
- What kind of investment options are available.
- How much it costs to manage the JISA, like any extra fees or charges.
- Whether the provider offers good customer service or support if you need help.
Learn more about our Junior ISA and the benefits it offers.
Step four: Complete a transfer form
If you’d like to transfer your CTF to a Shepherds Friendly Junior ISA, complete our transfer form and return it to us by email, post, or fax.
Step five: Sit back and relax
Once we receive your transfer form, we’ll take care of the rest. A parent or guardian with parental responsibility can open a JISA and manage the account, but remember, the money belongs to the child. They can take control of the account at age 16 but cannot withdraw the money until they turn 18.
FAQs: Everything you need to know about transferring a CTF to a Junior ISA
Are there any transfer fees?
There are no fees for transferring your child’s CTF to a JISA with Shepherds Friendly. You can search HMRC to find your CTF and then complete a transfer form. It’s important to remember that you don’t need to pay third-party services to do this for you. Some companies may try to charge a percentage of your account balance for this service, but it’s unnecessary.
What happens to CTF when a child turns 18?
When your child turns 18, their Child Trust Fund maturesThey automatically take control of the account but can’t add any more money. Your child can either take out the money or transfer to an ISA, which will close the CTF.
You can find out more about child trust funds and what happens when they mature on our website.
Can I transfer a matured CTF?
Even if your child’s CTF has already matured, you can still transfer it to a regular adult ISA. This can be a great way to still benefit from tax-efficient savings and potentially access a wider range of investment options.
What if I can’t find my CTF logins?
Losing track of login details happens to the best of us! If you’re struggling to find your Shepherds Friendly CTF login information, there are a few things you can do:
- Check your emails: Search your inbox for emails from Shepherds Friendly about your CTF. This might contain your login details or instructions on how to reset them.
- Contact our Member Services team on 0800 526 249 or email them at [email protected]. They’ll be able to help you get access to your account.
- Use the ‘forgotten password’ function: If you’re trying to log in online, look for a ‘forgotten password’ or ‘reset password’ option to reset your password.
If you’re unsure of your provider, then use the HMRC tool to find your CTF and follow a similar process with the company holding your fund.
In summary
- CTFs are a thing of the past: Child Trust Funds (CTFs) were discontinued in 2011 and replaced by Junior ISAs (JISAs).
- JISAs offer more: JISAs often provide greater investment choice, flexibility, and potentially lower charges compared to CTFs.
- Transferring is easy: You can transfer your child’s CTF to a JISA in a few steps. Just find your CTF provider, choose a JISA, and complete a transfer form.
- Give your child a better start: Transferring to a JISA can help your child’s savings grow tax-efficiently, giving them a head start towards their financial goals.
The value of investments can go down as well as up and you may get back less than you invested. Tax rules can change, and the benefits depend on individual circumstances.
If you have any questions about your Junior Stocks & Shares ISA or applying for the plan, our Member Services team will be happy to help. You can call them on 0800 526 249.
