unclaimed child trust fund

A quarter of Child Trust Funds worth £1, 900 each are STILL unclaimed: Why tax-free savings accounts were forgotten and how to find out if you have one

Child Trust Funds (CTFs) were tax-free savings products for children, introduced by the Labour Government in 2002 before being scrapped for new customers in early 2011.

However, more than a quarter of CTFs have remained untouched for a year or more after their owners turned 18,  according to the National Audit Office.

Trace Your Child Trust Fund This Autumn

Forgotten savings: A CTF is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011, which they can access when they turn 18

Separate research has found that almost a fifth of British adults, rising to 36 per cent of those aged 18-34, believe they may have lost a CTF, or let one set up on behalf of children or grandchildren become dormant.

The research from Gretel, an online service which reconnects people with lost and dormant accounts, estimates that there is over £2.2 billion sitting in lost or dormant CTFs. 

Millions Of Child Trust Funds Unclaimed

Myron Jobson, senior personal finance analyst at stockbroker Interactive Investor, said: 'The NAO's investigation into CTFs lays bare the high level of apathy for the account. 

'The NAO seemingly laments the fact that is nigh on impossible to establish how many people may have lost track of their investments in CTFs because of a lack of available data.

Like with today's Junior Isa, the idea was to help parents and guardians put aside cash for their children to set them up for adulthood.

Unclaimed Money Pennsylvania: Over $4 Billion Still Available To Claim

This comprised two £250 vouchers, one when the child was born and one when they turned seven, or two £500 vouchers for families on low incomes.

If parents failed to place these vouchers with a CTF provider, the Government automatically put the money into one on the child's behalf.

Of the 6.2 million CTF accounts in total, 1.8 million of them were opened by HM Revenue & Customs in this way.

Teenagers Have £1,900 In Trust Funds They Don't Know About

Laura Suter, head of personal finance at investment firm AJ Bell, said: 'Many parents and children aren't aware they even have the account, or don't know who the money is with or how to track it down.

'More than a quarter of CTF accounts were set up by the Government, because parents failed to do so within the 12-month window.

'This highlights why so many are unclaimed – as the parents either weren't aware or won't remember that an account was even set up for their child, let alone where the money is now.'

Child Trust Fund Warning

There are also fears that many CTF providers are charging huge sums for managing CTFs, eating into the money available to account holders.

The National Audit Office estimates that CTF providers – including banks and building societies – could be earning collectively up to £100 million per year through charges on accounts.

Suter adds: 'Many of these accounts have very high charges, meaning that all the time they go unclaimed providers are making huge sums that eat away at the capital.

Young People Could Be Owed Hundreds Of Millions From Unclaimed Trust Funds

'The report estimates that CTF providers are taking £100 million a year from savers in charges on the accounts, a figure that will increase as the accounts rise in value.

They will need to fill in an online form to ask HM Revenue & Customs where the account was originally opened - although they will need to create a Government Gateway User ID and password if they do not already have one.

Any parent looking for a CTF they set up will need the child's Unique Reference Number, which can be found on the annual CTF statement, or their child's National Insurance number.

How To Find Unclaimed Money

'For many people it will make sense to transfer it to a Junior Isa, where the charges will likely be lower and you'll have a much bigger investment choice.

'If you're transferring the CTF you need to move over the entire sum of money to a Junior Isa, you can't have both types of account open at once.

'This means that you can transfer the entire CTF into a Junior Isa and still add up to £9, 000 to it in the same tax year.'

A Quarter Of Child Trust Funds Worth £1,900 Each Unclaimed

1) If you were born between 1 September 2002 and 2 January 2011, and your parents received Child Benefit, you most likely have a Child Trust Fund account.

2) Your parent or guardian may have received a voucher to use to open a CTF account for you. If your parent or guardian didn’t open an account, HM Revenue & Customs may have opened one on your behalf.

4) If you are aged 16 or 17 you can take over responsibility for your CTF account from your parent or guardian, or you can choose to let them continue to manage it on your behalf.

Child Trust Fund: Warning As Thousands In Forgotten Cash Available

5) There are various options for what you can do with your money, including moving it into an ISA or another type of savings or investment account. Your CTF provider can advise you on the options available to you.

7) If your parent or guardian does not have details of your CTF account you can ask HM Revenue & Customs who your CTF provider is by completing an online form. Once you get in contact with your provider, they’ll tell you how much you have in your CTF account.

8) You’ll need your National Insurance number to access this form. This is made up of two letters followed by six numbers and one letter, like QQ123456A. If you don’t know your National Insurance number you can find out how to request it through the helpline.

Could Your Teen Have A Forgotten Child Trust Fund? £374m Was Left Unclaimed Last Year

10) If you’re not able to contact your CTF provider immediately after your 18th birthday you shouldn’t worry, they will keep your investments safe in a protected account until you tell them what you want to do with your money. However, fees for managing this cash can eat into your overall pot.

Chase Bank will pay £1% cashback on spending for the first 12 months. Customers also get access to an easy-access linked savings account paying 3% on balances up to £250, 000. The account is completely free to set up and is entirely app based. Also no charges when using the card abroad. Nationwide's FlexDirect Account offers 5% in-credit interest to new joiners when they switch on balances up to £1, 500. This rate only lasts for one year. The account is fee free. Halifax Rewards account is offering £175 when you switch. There is a £3 monthly fee to maintain the account. The fee is waived if you pay in £1, 500 or more each month. First Direct will give newcomers £175 when they switch their account. It also offers a £250 interest-free overdraft. Customers must pay in at least £1, 000 within three months of opening the account. NatWest's Select Account account pays £200 when you switch. The account has no monthly charges, but to be elligible for the £200, you'll need to deposit £1, 250 into the account and log into mobile banking app within 60 days.

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Young People Urged To Check For Unclaimed £2,000 In Uk Government Savings Account

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Dmg media Contact us How to complain Advertise with us Contributors Terms Do not sell or share my personal information Privacy policy & cookiesCould YOUR teenager have forgotten cash in a child trust fund? A huge £374m was left unclaimed last year - here's how to track it down

Unclaimed Funds Might Be Waiting For You!

British teenagers and their parents left £374million in matured Child Trust Funds in the seven months after the first young people were allowed to withdraw their cash, according to the latest figures from HMRC.

More than six million Child Trust Funds were set up for children born between 1 September 2002 and 2 January 2011, with children able to access the cash from aged 18. 

Sleeping giant? There are almost 5.5 million Child Trust Fund accounts still open but almost 4.6 million didn’t have any money paid into them during 2020/21

Federal Deposit Insurance Corporation

Child Trust Funds were tax-free savings products for children, introduced by the Labour Government in 2002 before being scrapped in early 2011.

Like with today's Junior Isa, the idea was to help parents and guardians set aside cash for their children to set them up for adulthood.

Parents and guardians were issued vouchers that they could then place with a Child Trust Fund provider, normally a bank or building society. 

St. Lucie Clerk Announces $535k In Unclaimed Funds

This comprised two £250 vouchers, one when the child was born and one when they turned seven,