HM Revenue and Customs (HMRC) has urged people with a Child Trust Fund to cash in on the money if they’re eligible as many people have forgotten theirs exists.
HMRC estimates more than 600,000 savers are sitting on pots worth around £2,212 on average.
In a recent post on social platform X, HMRC wrote: “Unlock a boost this Christmas by cashing in your #ChildTrustFund.
“If you’ve turned 18 in the past few years, then you could be missing out on a cash boost.”
Child Trust Funds are long-term, tax-free savings accounts established for children born between September 1, 2002, and January 2, 2011, with the Government contributing an initial £250.
Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 when the account matures.
The savings are not held by the Government but are held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested.
People can locate their savings by searching ‘Find your Child Trust Fund’ on GOV.UK .
It should be noted that it does not cost to locate the fund, and people do not need to pay anyone to do it. Locating the fund is free.
Third-party agents have been offering services to search for Child Trust Funds, but they always charge a fee – some as high as £350 or 25% of the account’s value.
HMRC has warned 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.
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.
The Share Foundation also offers a free tool to help people locate their Child Trust Fund. Over the past year, more than 450,000 individuals used this tool, requiring only their National Insurance number and date of birth.
