Over 670,000 Unclaimed Savings Accounts
A significant number of young people, around 671,000 aged 18 to 22, are being urged to check for unclaimed Child Trust Funds (CTFs) that could be worth an average of £2,212 each. HM Revenue and Customs (HMRC) has revealed that many of these savings accounts, established to support the financial futures of young adults, remain untouched.
What Are Child Trust Funds?
Child Trust Funds (CTF) were introduced by the UK government for children born between September 1, 2002, and January 2, 2011. The initiative aimed to help families save for their children’s future, with the government depositing £250 into each account at birth, followed by an additional £250 when the child turned seven. These accounts are long-term, tax-free savings options held in banks, building societies, or other financial institutions, rather than directly by the government.
Account holders can acquire ownership of their CTF at the age of sixteen, and they can withdraw the money—which, for individuals who might have forgotten about their savings, can amount to a sizable amount—at the age of eighteen.
The Importance of Claiming Your Funds
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, emphasized the importance of reclaiming these accounts, stating, “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.” She highlighted that individuals do not need to pay third-party agents to locate their funds; the information is readily accessible through official channels.
How to Find Your Child Trust Fund
If you are one of the people who might have forgotten about your Child Trust Fund, finding it is a simple task. You can get in touch with your CTF provider directly if you already know who they are. If you’re unsure, you may use the online tool on GOV.UK, though. You will need your date of birth and your National Insurance number, which can be readily accessed using the HMRC app, in order to access this information.
According to Gavin Oldham of The Share Foundation, “the government would have set aside money for you immediately after birth if you are between the ages of 18 and 21. This investment, which is in your name, would have increased significantly. The Share Foundation has successfully connected over 65,000 young people to their CTF accounts, reinforcing concept that it’s both easy and free to find your money.
Beware of Third-Party Agents
It’s essential to be cautious about third-party services that advertise their ability to locate CTF for a fee. Some agents charge up to £350 or take a percentage of the account’s value, which can significantly reduce the amount you ultimately receive. The truth is, you can complete the search yourself at no cost and without the need for any intermediary.
Rising Awareness and Action
In the past year alone, over 450,000 young people successfully used the free tool on GOV.UK to locate their Child Trust Funds with just their National Insurance number and date of birth. This growing awareness reflects a positive trend among young adults taking charge of their financial futures.
Why You Should Act Now
With the average savings pot being over £2,200, this is a substantial amount of money that could be used for education, starting a business, or other important life events. Don’t let your Child Trust Fund go unclaimed; take a few minutes to find out if you have savings waiting for you.
The Child Trust Fund initiative was designed to help young people start their adult lives with a financial cushion. If you’re between 18 and 22 and haven’t checked for your CTF, now is the time to do so. By reclaiming this money, you can make a significant step towards securing your financial future. For more information and to begin your search, visit GOV.UK today.
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