Noughties babies in particular should listen up
It’s always nice to find a bit of money knocking around, whether it’s a pound under the sofa, a fiver in a coat pocket or a tenner on the street.
But how about finding out there’s £2,000 in an account that belongs to you?
The government has warned Brits they could have thousands of pounds stashed away in “forgotten savings” – if you were born during a particular time period.
HM Revenue and Customs urged anyone born between September 1, 2002 and January 2, 2011, to check if they have a Child Trust Fund, that could be worth around £2,000.
In a post on X on Friday, HMRC said: “Were you born between 1 Sep 2002 and 2 Jan 2011? Check if you have forgotten savings in a Child Trust Fund – worth around £2,000 on average.”
Child Trust Funds (CTFs) are long-term, tax-free savings accounts that the government set up for every child born between September 1, 2002 and January 2, 2011.
Some 6.3 million CTFs were opened, with the government making an depositing an initial deposit of up to £250 in each one. Parents were then encouraged to regularly add to the accounts and save for their child’s future, with the child able to withdraw the money when they turned 18.
But it seems that of those born in this time period are unaware the accounts exist, with the government having warned that some 430,000 of the funds have matured and are going unclaimed.
HMRC reckons the average amount sitting in the accounts is £2,100.
Speaking in September last year, Angela MacDonald, 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.”
Sharon Davies, CEO of Young Enterprise, also said: “We would encourage all young people to investigate if they have money which is unclaimed in a Child Trust Fund and to use it wisely.
“A disproportionate amount of the money is unclaimed by young people from disadvantaged backgrounds who are the very people who would benefit most from these funds.
“The investment could be placed into an adult ISA or put towards driving lessons, education or starting a business.
“The money in a Child Trust Fund has the potential to be life changing and the lack of knowledge about them shows the importance of financial education and financial planning from a young age”.
Similar pleas have been echoed by Martin Lewis.
For more information about CTFs or to find out if you’ve got one and where it is, you can visit the HMRC website by clicking here.
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