This Christmas, HM Revenue and Customs (HMRC) is issuing an urgent reminder to young people aged 18-21: check if you have an unclaimed Child Trust Fund (CTF) account. With an average balance of £2,000 and some accounts holding up to £2,200, these funds could provide a welcome financial boost during the holiday season.
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What is a Child Trust Fund?
The Child Trust Fund is a long-term, tax-free savings account established by the UK government for children born between 1 September 2002 and 2 January 2011. The scheme aimed to provide young people with a financial head start when they turned 18.
Key details about the scheme:
- Tax-Free Growth: The accounts were designed to grow tax-free until maturity.
- Eligibility: Accounts were opened for children born within the specified dates, even if parents or guardians didn’t set one up.
- Replacement: The scheme ended in January 2011 and was replaced by Junior Individual Savings Accounts (Junior ISAs).
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Who Can Claim the Funds?
Young people aged 18 and over are eligible to take full control of their Child Trust Fund. The money can be withdrawn or reinvested into another savings vehicle, such as an ISA. If you turned 18 recently or haven’t checked your account, you might have money waiting for you.
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How to Find Your Child Trust Fund
If you’re unsure about your account’s status, HMRC provides an easy way to track it down:
- Visit GOV.UK: Use the Child Trust Fund search tool to locate your account.
- Contact Providers Directly: If you know your CTF provider (bank, building society, or savings provider), contact them to access the funds.
- Parents Can Assist: Parents or guardians can also help track down the account details if needed.
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Why You Should Check Now
More than 5.3 million Child Trust Fund accounts are still open, with many young adults unaware they hold significant savings. Since the scheme began, over 500,000 matured accounts have been claimed or transferred to ISAs, leaving millions unclaimed.
What if You Missed Out on Setting Up a CTF?
If a parent or guardian did not establish a Child Trust Fund, the government automatically set up an account on the child’s behalf. These accounts are still accessible, provided you meet the eligibility criteria.
What Happens Next?
- Claim Your Funds: Once you’ve identified your account, you can withdraw the money or transfer it to a Junior ISA.
- Act Fast: HMRC is encouraging eligible individuals to unlock their funds, especially during the holiday season when the extra money can make a significant difference.
Make the Most of Your Child Trust Fund Today
With up to £2,200 potentially sitting in your account, there’s no better time to check if you’re eligible for this financial boost. For more information and to begin your search, visit GOV.UK.
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