HMRC urges Brits to ‘cash in’ on forgotten £2,200 savings

The tax office has urged people to check if they can “cash in” on a savings account worth an average of £2,200.

Child Trust Funds are long-term, tax-free savings accounts set up for children born between September 1, 2002, and January 2, 2011, with an initial £250 contributed by the Government. Account holders can withdraw the money once they turn 18. However, many may have forgotten the accounts’ existence, as thousands are yet to claim their money. In a new post on X, HM Revenue and Customs (HMRC) said: “Born between 2002 and 2011? You may have a #ChildTrustFund, which can be cashed in as soon as you turn 18.”

To locate accounts, people can use the free “Find your Child Trust Fund” tool on GOV.UK.

Claimants will need their National Insurance number, which can be found easily using the HMRC App, and their date of birth to access the information.

The accounts are held by the likes of banks, building societies, and other savings providers until they are withdrawn or reinvested. They are not held by the Government.

The official locator tool is free to use, so there’s no need to pay third-party agents extortionate rates to source your account for you.

These services can reduce the amount received and may delay the process, as users still have to provide agents with the same information required to search for the accounts themselves.

Sharon Davies, CEO of Young Enterprise, 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.”

She added that a “disproportionate amount of the money” is unclaimed by young people from disadvantaged backgrounds, who would benefit most from these funds.

The Child Trust Fund scheme closed in 2011, with the option of investing in a Junior Individual Savings Account (ISA) available instead.