August M
Hundreds of thousands of young adults in the UK could be sitting on savings they do not even know exist. A government-backed scheme means some people born in the 2000s may be entitled to a cash pot worth more than £2,000.Yet many accounts remain untouched.
LADbible reports that those born between 1 September 2002 and 2 January 2011 may have money waiting in a Child Trust Fund (CTF). The long-term, tax-free savings accounts were introduced by the UK government and later replaced by Junior ISAs in 2011.
Parents or guardians were able to open the accounts, and in some cases local authorities set them up for children in care.
Unclaimed millions
According to government figures cited by LADbible, more than 670,000 young people aged between 18 and 22 have not claimed their funds. The average account holds £2,212.
Once the account holder turns 18, they can access the money directly. Those who already know their provider can contact them to check the balance and discuss options.
If the provider is unknown, individuals can ask a parent or guardian or use HM Revenue and Customs (HMRC) to trace the account through the GOV.UK website.
What happens next
MoneyHelper states that providers usually respond within one to two months after being contacted, outlining the available options.
There are two main types of CTF accounts: a cash account earning tax-free interest or a shares-based account invested in the stock market. After accessing the fund, account holders can withdraw the money, reinvest it, transfer it to another savings product, or combine these options.
If no action is taken, the money remains in a protected account until the individual contacts the provider.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said: “Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible. You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.”
Sources: LADbible, HMRC, GOV.UK, MoneyHelper
