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Millions of people to get money from ‘hidden savings’ starting next month
Are you entitled to thousands?
Millions of young people will start getting money from their ‘hidden savings’, starting from as early as next month.
A lot of UK teens are set for a big cash windfall, in some cases thousands of pounds, when access to Child Trust Funds is allowed for the first time
According to HMRC, in total 6.3 million CTFs have been set up since they were launched in 2002, with approximately 4.5 million of them opened by either parents or guardians, while a further 1.8 million were created by HMRC themselves when parents failed to do so.
That means 1.8 million teens could be in for a secret windfall, so you best check to see if you have any cash saved away.
The first 55,000 CTF holders are turning 18 next month and will be able to access their cash for the first time, so HMRC has set up a free online tool so people can check for lost accounts.
Child Trust Funds were a government initiative set up by Labour for any kid born between September 1st 2002 and January 2nd 2011 – when the scheme was scrapped by the coalition government.
Parents and guardians were given an initial voucher worth between £50 and £1,000 – depending on income etc – to deposit in the CTF, and were able to keep adding to the account, up to £9,000 per year.
How much is in each account will depend on both how much cash was initially deposited and whether parents chose a cash or a stocks and shares account.
According to investment company AJ Bell, someone who deposited two sums of £500 – one at birth and another when they turned 7, for example – and made no more deposits but had their money invested in the FTSE 100 would have £2,397 sitting in their account.
Alternatively another account provider, OneFamily, has previously estimated that on average there is £2,175 held in its CTF accounts.
To check if you or a family member have got one, head over to the Gov.uk website here – you just need a Government Gateway user ID and password.
For parents checking their kids accounts, you’ll need your kid’s Unique Reference Number or National Insurance number, and if you’re looking for your own, you only need your National Insurance number.
Simply complete the form and HMRC will be in touch with details of your account within three weeks.