It is believed around £1.4 billion belonging to 728,000 people age 18 to 22 is sitting lost in savings accounts unclaimed, according to HMRC.
The government tax authority estimates the average amount ‘lost’ is worth around £2,212 each.
Around 6.3 million people born between September 2002 and January 2011 were entitled to a Child Trust Fund (CTF).
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 held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested.
The Share Foundation is urging 18 to 22-year-olds to track down their lost accounts and urging parents and grandparents to help.
It said if teenagers or their parents, grandparents 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 their Child Trust Fund provider.
Young people will need their National Insurance number – which can be found easily using the HMRC app – and their date of birth to access the information.
CTFs can be tracked down for free, although third-party agents are advertising their services offering to search for Child Trust Funds, and agents will always charge – with one charging up to £350 or 25% of the value of the savings account.
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, The Share Foundation, said: “If you are 18-21 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 GOV.UK tool to locate their Child Trust Fund.
More information on Child Trust Funds and how to access your savings can be found on GOV.UK.
Latonya Skye-Paterson told BBC News she had no idea a Child Trust Fund had been set up for her until her college tutor suggested she check online.
“I found I had £955 in there, which is a lot. A lot more than I was expecting… it helped me so much,” she said.
Latonya, 20, is one of 6.3 million people born between September 2002 and Jan 2011 who had a child trust fund kick started by a payment, usually £250, from the government.
