Millions of children have a hidden savings account worth £1,900 – how to find it

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Millions of kids have a hidden savings account that can cost thousands of pounds.

In April last year, there was still an incredible £10.4 billion left in the Child Trust Fund.

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There may be thousands of people waiting for your little onecredit: getty

On average, each account is believed to have £1,911 . Is waiting,

Sarah Coles, senior personal finance analyst at Hargreaves Lansdowne, said: “The incredible sums of money sitting neglected in CTFs are not just a chance to make more of your money – a large portion of it can end up as money down the drain.

“There’s a good chance these kids never even knew they had CTF, because 6.3 million accounts were opened, 1.8 million of them opened by HMRC after parents didn’t make a choice.

“Other people have been forgotten along the way.”

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But if the parents track down their little ctf, They could potentially uncover thousands of pounds of cash.

the exact amount of cash that can be forgot Will vary though.

When the plan was established, the parents were given £50 to £1,000. Vouchers up to It depends on when the child was born, as well as whether they were on a low income at the time.

If the parent has not deposited cash in CTF and voucher on behalf of his child, HMRC will act and do so on behalf of the child.

But because of that “auto-enrolment” most parents won’t touch since accounts.

thank you they easy enough to track,

As it stands, there are about 5.5 million accounts still open.

“Given that around 4.6 million had no money during 2020/21, potentially millions could go astray,” Sarah said.

how to find cash

You need to start by checking if you have any paperwork in a folder or drawer at home.

If you’re not sure if it even exists, you can fill in a Online form through Gov.uk website To check if there is a CTF account in your child’s name.

However an easy way to know right away is to check their birthdays.

Children born between 1 September 2002 and 1 January 2011 are eligible for CTF.

Parents looking for a child’s account need their unique reference number from the annual CTF statement or their national insurance number.

If you are looking for your own trust fund, all you will need is your national insurance number.

It is usually sent automatically three months before your 16th birthday, but you can track it through government If you have lost it.

Once the form is completed, HMRC will mail you the details of the CTF provider within three weeks.

But once you get that far, you can’t cash out whenever you want.

you 18. should be to gain accessSo even if the big birthday hasn’t started yet, there’s still waiting on your hands.

The first group only gained access for the first time since September 2 last year.

There is a chance that parents and children are waiting on their trust funds, although even more cash is missing.

The Child Trust Fund initiative was scrapped in 2011, but there is a better JISA alternative “Well Deserved” Being Movedaccording to experts.

more on offer

Junior ISA accounts are also tax-free savings accounts — and you can £9,000. save till In.

CTFS was replaced by junior ISAs In November 2011, so you can’t get even now if you want.

That’s not a problem though, as savings experts point out that you can get more “bang for your money” with an alternative savings account.

Sarah said: “CTF may seem like an easy option for your kids to put away the nest egg: You already have the account, so you might as well use it up.

“However, it has much less to offer than the Junior ISA, and you can now switch from one to the other.”

The money is still locked in until the age of 18, after which it will belong to the child.

But JISA has many advantages.

If you are willing to keep your money in cash, they offer more competitive rates.

The experts at Hargreaves Lansdowne pointed out that right now you can get 2.6% on a JISA – while the best CTFs are only offering 2.1%.

If you are in an investment CTF you may pay odds of the fee because stakeholder CTFs are essentially trackers capped at 1.5%.

And JISA’s are usually pretty cheap; Sarah reveals that an equivalent tracker is about a third of the cost.

a father was able Save a whopping £180,000 Using JISA for my three kids, so they shouldn’t be overlooked.

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Meanwhile, another budding saver has managed to hide £2,700 only at age 11,

setting aside just a little every month Like CTFs, your own children can have thousands of children as they grow up.

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