HMRC is urging hundreds of thousands of 18 to 22-year-olds to cash in their Government savings pot, worth an average of £2,212.
Child Trust Funds are long-term, tax-free savings accounts which were set up, with the Government depositing £250, for every child born between September 1, 2002, and January 2, 2011.
Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures.
The savings are not held by the Government but are instead held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested.
Angela MacDonald, HM Revenue and Customs (HMRC) 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 http://GOV.UK .”
If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly.
If they do not know where their account is, they can use the online tool on GOV.UK to find out. Claimants will need their National Insurance number – which can be found easily using the HMRC App – and their date of birth to access the information.
This comes as third-party agents offer services to search for Child Trust Funds, but they always charge a fee—some as high as £350 or 25 percent of the account’s value.
HMRC warns that using an agent can significantly reduce the amount received, is likely to take longer and customers still need to supply them with the same information they need to do the search themselves.
Gavin Oldham from The Share Foundation said: “If you are 18 to 21 years old, the Government would have put money aside for you shortly after birth. This investment would have grown quite a bit and it’s in your name.
“The Share Foundation has linked over 65,000 young people to their Child Trust Fund accounts. It’s easy and free to find out where your money is. Go to findCTF.sharefound.org or GOV.UK to locate it today”.
In the last year more than 450,000 customers, with just their National Insurance number and date of birth, used the free tool to locate their fund.
