People born between 2002 and 2011 could be owed more than £2,000 from a Child Trust Fund (CTF) they have forgotten about. HMRC data shows 760,000 matured Child Trust Funds, valued at an average of £2,240 each, have yet to be claimed.
What is a Child Trust Fund?
The CTF was a government-backed scheme that gave children born between 2002 and 2011 a tax-free savings or investment account with a set amount in it, which parents could then add to. The money becomes available for the child to claim when they turn 18, but many have not done so.
Personal finance experts such as Martin Lewis, MSE, have said these accounts are relatively easy to find on your own, despite companies offering to locate them for a fee.
Official advice on claiming
Chris Knight, director of insurance at the FCA, said: "A Child Trust Fund can be a welcome source of extra cash at a time when many young people need it most. But you don't need to pay someone else to claim what's rightfully yours - tracing and accessing your own Child Trust Fund costs nothing, so think twice about handing over a chunk of your savings to a claims firm for a job you can do yourself."
Myrtle Lloyd, HMRC's chief customer officer, said: "If you're between 15 and 24, you could be sitting on a savings payout and not even realise it. Just search 'find my Child Trust Fund' on GOV.UK to find your savings account today."
How to trace your fund
HMRC's complimentary online tracing tool is available to help people locate their CTF. To get started, you will need your National Insurance Number and date of birth. Once the form is submitted, you should hear back from HMRC within three weeks.
You can ask HMRC to find a Child Trust Fund if you're a parent or guardian of a child under 18, or you're 16 or over and looking for your own trust fund. The funds in these accounts could have grown significantly depending on how they were invested.
