What is the difference between a Junior ISA and a Child Trust Fund?

Junior ISAs (JISAs) replaced Child Trust Funds (CTFs) in 2011. JISAs have a £9,000 annual allowance (2025/26) and typically offer better interest rates and investment choices. CTFs were government-backed accounts given to children born between 2002-2011 with a lower £9,000 allowance but fewer investment options.

Can I transfer a Child Trust Fund to a Junior ISA?

Yes, since April 2015, you can transfer a CTF to a Junior ISA. This is often a good idea because JISAs typically offer better investment choices and lower fees. The transfer process takes 15-30 days and you can keep the same provider or switch to a new one.

What happens to a Child Trust Fund at age 18?

At 18, a CTF automatically converts to an adult ISA in the child's name. They gain full control of the money and can withdraw, transfer, or continue investing. They can also choose to move it to a different provider with better rates.

Which is better for a teenager - Junior ISA or Child Trust Fund?

For most teens, a Junior ISA is better. JISAs offer wider investment choices, typically lower fees, and better interest rates on cash options. If your teen has an old CTF, consider transferring it to a JISA for these benefits.

Junior ISA vs Child Trust Fund: Which Is Better?

If your parents opened an account for you as a baby, you might have a Child Trust Fund (CTF) sitting around. But there's a newer option now — Junior ISAs. Here's which one wins.

The Quick Answer

Junior ISA wins. Better investment choices, lower fees, usually better rates. If you have an old CTF, consider transferring it.

But let me explain why, because this stuff actually matters.

What Even Are These Things?

👶 Child Trust Fund (CTF)

What it is: Government scheme that ran from 2002-2011. Every baby born in the UK got a voucher to invest.

Who has one: Anyone born between 1 Sept 2002 and 2 Jan 2011

Current allowance: £9,000/year

Status: Closed to new accounts, but existing ones keep growing

📈 Junior ISA (JISA)

What it is: The replacement for CTFs. Tax-free investing for under-18s.

Who can open one: Any UK resident under 18 (parent/guardian opens it)

Current allowance: £9,000/year (2025/26)

Status: Active and the main option now

The Key Differences

Feature	Child Trust Fund	Junior ISA
Annual allowance	£9,000	£9,000
Investment choices	Limited	Wide range
Typical fees	Higher (1-1.5%)	Lower (0.2-0.5%)
Cash interest rates	Usually lower	More competitive
Provider options	Fewer providers	Many providers
Transfer to JISA?	Yes (since 2015)	N/A
Access age	18	18
Winner	❌	✅

Why Junior ISAs Are Better

More Investment Options

CTFs were set up when the government was still figuring this out. Many CTF providers only offer a few basic funds.

JISAs give you access to thousands of funds, ETFs, and individual stocks. You can pick Vanguard, Trading 212, Freetrade, Hargreaves Lansdown — way more choice.

Lower Fees

This matters more than you think. A 1% difference in fees over 10 years can cost you thousands.

Old CTFs often charge 1-1.5% annually. Modern JISAs can be as low as 0.15-0.45%.

Better Cash Rates

If you want cash savings (not investing), JISA rates are usually higher. Some offer 4-5% on cash right now.

CTF cash rates are often terrible because providers know most people don't switch.

More Competition

Loads of providers offer JISAs, so they compete on price and features. CTFs are a dying product — fewer providers, less innovation.

Should You Transfer a CTF to a JISA?

Short answer: Probably yes.

Since April 2015, you can transfer a CTF to a Junior ISA. Here's when it makes sense:

✅ Transfer if:

Your CTF has high fees (over 0.5%)
You want more investment choices
You want to use a specific provider (like Trading 212)
Your CTF cash rate is under 3%

⚠️ Check first if:

Your CTF has a loyalty bonus or guaranteed rate
You'd pay exit fees (rare, but check)
Your CTF is about to mature (turning 18 soon)

How to Transfer CTF to JISA

Open a Junior ISA with your chosen provider
Ask the new provider for a CTF transfer form
Fill it out with your old CTF details
Wait 15-30 days for the transfer to complete
Done! Your old CTF closes, money moves to JISA

You don't pay tax on the transfer, and your allowance doesn't change. The whole amount just moves over.

What Happens at Age 18?

Both accounts work the same way:

Money automatically becomes yours at 18
Account converts to an adult ISA in your name
You can withdraw, transfer, or keep investing
Adult ISA allowance: £20,000/year (2025/26)

My Situation

I don't have a CTF (born after 2011), so I have a Junior ISA. But if you're 15-23 years old now, check if you have an old CTF your parents set up.

The government voucher was only £250-500, but with growth over 15-20 years, some people have £5,000-£10,000 sitting in accounts they forgot about!

🔍 Check if You Have a Lost CTF

Go to the government's Find a Child Trust Fund page if you don't know who your provider is.

The Bottom Line

Junior ISAs beat CTFs in almost every way. If you have an old CTF, transfer it. If you're starting fresh, go straight to a JISA.

The £9,000 annual allowance is the same, but JISAs give you better choices, lower fees, and more control. That's an easy win.

Disclaimer: I'm 15 and learning about this stuff. This isn't financial advice — just sharing what I found out. Check with your parents or a proper financial advisor before transferring anything.