Experts suggest that young savers could be missing out on lower fees and higher returns by leaving money in a Child Trust Fund (CTF) rather than transferring it into a Junior ISA (JISA).
CTFs were tax-free accounts for children born between 1 September 2002 and 2 January 2011, with an initial government deposit of £250. They were replaced by Junior ISAs in November 2011, but millions still hold CTFs, and around 758,000 accounts had not been claimed as of April 2025.
Junior ISAs generally offer a wider range of investment options and potentially better rates on cash accounts. For example, a typical CTF pot of £2,200 would earn £80 a year at Yorkshire Building Society's closed CTF rate of 3.65%, which drops to 2.35% at maturity. In contrast, Leek Building Society's top cash JISA rate of 3.85% would earn £84.70 on the same pot.
Investment charges can also be higher in CTFs, with default stakeholder accounts having fees capped at 1.5% per year. Junior ISA charges can be as low as 0.15% to 0.35%, depending on the platform, before underlying fund charges.
Transferring a CTF to a Junior ISA involves completing a transfer form with the new provider, and the CTF must be transferred in full and closed. Transfers can take between two and six weeks.