The government is advising teens to check their Child Trust Fund Savings account as they may be sitting on thousands of pounds that they are able to withdraw.
The savings accounts were set up for children born between September 2002 and January 2011, many of whom have reached adulthood or who is set to turn 18 soon.
What is a Child Trust Fund Savings account?
Between September 1 2002 and January 2 2011, Child Trust Funds were set up for every child born. The government provided a deposit of £250 into each account, to encourage future savings.
The accounts are long-term and tax-free savings accounts and parents can add up to £9,000 a year to them. The money belongs to the child and while they can take control of the account when they are 16, they can only withdraw money once they turn 18.
When the child turns 18 years old, as well as being able to access the money, the account matures.
The government has advised these teenagers that they could have savings waiting for them worth an average of £2,100.
How to access your Child Trust Fund Savings account
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said that ‘teenagers could have a pot of money waiting for them worth thousands of pounds and not even realise it.’
MacDonald encouraged these teens to go search ‘Child Trust Fund’ on Gov.uk for more information on how to access these savings.
If you already know who your Child Trust Fund provider is, you can contact them directly. However, if you are unsure, you can visit Gov.uk and fill in an online form to find out where your Child Trust Fund is held.
It is estimated that 6.3 million Child Trust Fund accounts were set up throughout the duration of the scheme, containing about £9 billion. Savings accounts were open on children’s behalves if their parent or guardian was unable to do so.
In January 2011, the scheme was replaced with Junior Individual Savings Accounts.