People born in or before 2007 have been reminded that they may be missing out on free cash this Christmas, which could be worth more than £2,000. Several families may have forgotten about this account that could be gathering dust.
In a post on X, a HMRC spokesperson said: "Unlock a boost this Christmas by cashing in your Child Trust Fund. If you’ve turned 18 in the past few years, then you could be missing out."
On a child’s 18th birthday, the Child Trust Fund matures. This means that they can automatically take over the account, and no more money can be added.
Your child can either take out the money or transfer the money to an adult ISA. The latest age group to reach the maturity threshold were born in 2007. Until your child withdraws or transfers the money, it stays in an account that no one else has access to.
A Child Trust Fund is a long-term tax-free savings account set up for all children by the government who were born between 1 September 1, 2002, and January 2, 2011. People with parental responsibility over a child, or relatives who were given account details, could add up to £9,000 a year into the fund.
On the GOV.UK website, it states: "The money belongs to the child and they can only take it out when they’re 18. They can take control of the account when they’re 16."
The government at the time deposited at least £250 into each account. These tax-free savings accounts have now matured, and young people can withdraw their funds once they turn 18. The average account balance stands at £2,212.
Contact your Child Trust Fund provider directly if you know who the account is with. If you do not know the provider, you can ask your parent or guardian.
You can ask HMRC if you’re 16 or over, and looking for your own trust fund, using this free online tool to figure out your provider. It will not tell you how much money is in a Child Trust Fund.
You’ll be asked for your National Insurance number. You’ll also need your adoption details if they apply.
If you’re a parent or guardian looking for a child’s trust fund, you’ll need:
