HMRC has published their latest statistics on Child Trust Funds (CTFs) that reveal that whilst around 500,000 accounts have now matured, there remains some 430,000 funds that have matured but remain unclaimed.
If you turned 18 on or after 1 September 2020 there may be cash waiting for you in a dormant CTF. The average market value of an unclaimed CTF can be £2,000. The actual amount of money depends on a number of factors.
Children born after 31 August 2002 and before 3 January 2011 were entitled to a CTF account provided they met the necessary conditions. These funds were invested in long term saving accounts for newly born children.
Around 7 million CTF accounts were set up since the scheme was launched in 2002, roughly 6 million by parents or guardians and a further 1 million set up by HMRC where parents or guardians did not open an account.
Around 55,000 accounts mature each month and HMRC has created a simple online tool to help young people find out where their account is held. If you’re unsure if you have an account or where it may be, it’s easy to track down your provider online.
The actual CTF accounts are not held by HMRC, but by a wide range of CTF providers who are financial services firms. Families can continue to pay into a CTF, until the maturity date. There is an annual limit of £9,000, and there is no tax to pay on the CTF savings interest or profit.
HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:
'Many 18-21 year olds are starting out in first jobs or apprenticeships, starting university or moving into their first home and their Child Trust Fund is a pot of money with their name on. I would encourage young people to use the online tool to track it down or, for parents of teenagers, to speak to them to ensure they’re aware of their Child Trust Fund. It could make a real difference to their future plans.'
