Parents of children born between September 2002 and January 2011 were given vouchers by the government on the day they were born – but many of them have been forgotten for years
Tens of thousands of young people don’t know they could have £1,000 to join the Children’s Trust Fund (CTF) since 2002.
Latest figures show 100,000 teenagers are missing out on money already invested on their behalf like part of a policy introduced in the early 2000s.
Parents of children born between September 2002 and January 2011 have been given vouchers by the government on the day they were born – and while millions of children have been visited since then, thousands have be forgotten.
New figures show 140,000 teenagers are missing out on a total of £209.5m.
On average, accounts According to HMRC figures, it is now due to hold around £1,500.
But it is estimated that one in six young people is not even aware of their personal clutches.
According to financial firm Hargreaves Lansdown, around 139,683 teens may be missing out on a pile of free cash.
In September, HMRC said that figure was £171m, with 114,000 teenagers none the wiser about their CTF.
But the accounts mature when you turn 18 – and about 55,000 accounts are eligible to receive their cash each month.
At this point, their owners can withdraw or transfer their savings to the adult ISA.
In many cases, parents or guardians set up these accounts with a Child Trust Fund Provider when a child is born – usually banks, building associations or investment managers.
Have you searched and found a forgotten account? Contact: firstname.lastname@example.org
If the account is not opened by the child’s parent, HMRC will set up an account on the child’s behalf.
Between 2002 and early 2011, approximately six million CTFs were opened by parents or guardians, with another million set up by HMRC.
Treasury Economy Secretary John Glen said: “If you’re not sure if you have an account or where it might be, it’s easy to get help from HMRC to track suppliers online. your level”.
What is a Children’s Trust Fund?
Under this program, parents and guardians with children born between 2002 and 2011 receive a gift certificate to be deposited into a CTF account on behalf of their child.
Gift certificates are worth between £50 and £1,000 depending on when the children were born, as well as whether the parents were on low income at the time.
These need to be invested in special CTF accounts offered by many banks and investment companies, where parents can choose between cash or stock and stock versions.
If a parent fails to submit an offer, HMRC will do it for them.
At age 16, a child can choose to operate their CTF account or have their parent or guardian continue to look after them, but they cannot withdraw funds. At the age of 18, the CTF account matures and the child can withdraw money from the fund or transfer it to another savings account.
How much was put in?
Initially, the government puts £250 into a tax-free account when the child is born, then another £250 when the child turns seven.
For lower income families, the payment is £500.
Parents, family and friends can also contribute to the account to set limits.
How much is in there now, it all depends on what the government put in in the first place, whether your parents added it, and any profits you’ve accumulated over the years.
Will I lose my account?
Any young person unsure of whether they have CTF should first ask a parent or guardian if they remember having established a CTF.
Once they know who their provider is, they should contact them directly – and request a withdrawal or transfer to an adult ISA or other savings account.
You can use this online tools to check if you have forgotten your account.
The Share Foundation charity is also active a free search service.
Than information about children trusts offered through the government-backed Pensions and Money Service.
https://www.mirror.co.uk/money/your-child-could-1000-forgotten-25667243 Your child could have £1,000 in a forgotten bank account - here's how to find out