Child Trust Funds lost in time
Almost three million Child Trust Funds (CTFs) have been claimed or transferred into an individual savings account (ISA), but around 827,000 matured CTFs remain unclaimed; worth an average £2,310 each.
CTFs were opened for every child born between 1 September 2002 and 2 January 2011, with accounts benefiting from an initial cash voucher:
- Even if parents did not open a CTF, HMRC would have opened one on a child's behalf. Without parental involvement, it is no surprise that many account holders are unaware of a CTF’s existence.
- The government added a further amount for any child who turned seven by 31 July 2010.
CTFs are held by banks, building societies and other savings providers. The number of providers has shrunk, with some merging and others exiting the market, meaning many CTFs will now have a different provider than when an account was set up.
Taking control
Those aged at least 16 years old can take control of their CTF, and it might well be worthwhile moving funds to a junior ISA for a better rate of interest. Upon maturity at age 18, funds can be withdrawn or reinvested in an adult ISA.
Tracing lost accounts
If the provider is known, then they should be contacted directly. Funds can be moved to another provider into an ISA, but it may pay to shop around. If the provider is not known, HMRC provides an online tracing service for parents and guardians, or for those aged at least 16 and looking after their own CTF.
The child’s national insurance number and date of birth are required, with a request taking about five minutes to complete. HMRC will normally respond with details of the CTF provider within three weeks, although they will not specify how much is in the account.
The oldest matured CTFs are now more than six years old, and some young people may be completely unaware that they have savings available to them.
The starting point for HMRC’s CTF tracing service can be found here.
