Young adults could have a pot of free cash worth more than £2,000 sitting unclaimed
People born in or before 2007 have been reminded that they could be missing out on free money this Christmas, potentially worth more than £2,000. Plenty of families may have forgotten about this account, which could be sitting untouched.
In a recent post on X, formerly known as Twitter, a HMRC spokesperson said some people may be unaware. They explained: “Unlock a boost this Christmas by cashing in your Child Trust Fund. If you’ve turned 18 in the past few years, then you could be missing out.”
When a child reaches their eighteenth birthday, the Child Trust Fund reaches maturity. This means they can automatically assume control of the account, with no further contributions allowed, reports the Express.
The child has the option to withdraw the funds or move the money into an adult ISA account. The most recent age group to hit the maturity milestone were those born in 2007.
Until funds get withdrawn or moved by the child who owns the account, the cash sits in the account, and nobody else can access it. The Government often issues reminders about these accounts. It’s up to the account holder (the child) what they do once the money is able to be withdrawn.
Martin Lewis’ MSE team put together a guide of different options, such as adding the funds to an Adult ISA account to continue growing over time. For those keen to get a foot on the property ladder, this could give them a much-needed boost to the initial deposit. It could also help repay any outstanding debts that people may have built.
What is the Child Trust Fund?
A Child Trust Fund is a long-term tax-free savings account established by the government for all children born between September 1, 2002, and January 2, 2011. Those with parental responsibility for a child, or relatives who received account information, could contribute up to £9,000 a year to the fund.
The GOV.UK website explains: “The money belongs to the child and they can only take it out when they’re 18. They can take control of the account when they’re 16.”
The government at the time deposited a minimum of £250 into each account, with low-income families getting an extra £250 extra (£500 in total). These tax-free savings accounts have now matured, and young people can access their funds once they turn 18. The average account balance is around £2,212.
How to locate your Child Trust Fund
If you know who the account is with, contact your Child Trust Fund provider directly. If you’re unsure of the provider, you can ask your parent or guardian.
If you’re 16 or over and searching for your own trust fund, you can use this free online tool provided by HMRC to identify your provider if your family cannot find the details. However, it won’t tell you the amount of money in a Child Trust Fund.
You’ll be asked for your National Insurance number and, if applicable, any adoption details. If you’re a parent or guardian looking for a child’s trust fund, you’ll need:
- the child’s full name, address and date of birth
- any previous names you or the child have used
- the child’s National Insurance number – if you have it
Once you know the provider (such as OneFamily, Nationwide, Foresters etc), go to the relevant website and log into your account. You should then be able to see exactly how much is in the account.
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