Young people can still claim thousands from huge fund worth over a billion most don't know exists
Thousands of young people in the UK still don't know that they can claim a mega amount of cash from a tax-free savings account.
Households up and down the country will be bracing themselves for the colder weather months, being mindful of heating costs and expenses.
If you're aged 18 to 23, however, you might be able to help out your parents because of a long term savings account you never knew existed.
Latest figures show that 758,000 people in that age range haven't yet accessed their Child Trust Fund savings account set up for children born between 1 September 2002 and 2 January 2011, requiring an initial government deposit of at least £250.
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An average account is worth £2,242 each, and young people can take control of it when they're 16, but can only take money out when they're 18.
You can continue to add up to £9,000 a year to an existing Child Trust Fund account and there’s no tax to pay on the Child Trust Fund income or any profit it makes. It will not affect any benefits you receive.
Although the Child Trust Fund scheme closed in 2011, it's worth checking if you have anything in there by finding out if you have one.
"Contact your Child Trust Fund provider directly if you know who the account is with," the government website explains.
"If you do not know the provider, you can ask your parent or guardian.
"You can also ask HM Revenue and Customs (HMRC) to find a Child Trust Fund provider.
"They can tell you where the account was originally opened."
Given that September is weirdly the most common birth month, thousands of 18 year olds will have been eligible for the past 30 days.
Shelley Doorey-Williams, CEO of the London Foundation for Banking & Finance, said: "As a committed member of the YFCG (Youth Financial Capability Group), the London Foundation for Banking & Finance welcomes HMRC’s call for young people to claim their Child Trust Fund savings.
"It’s encouraging to see the Government making efforts to reunite people with money they may not even realise was theirs.
"With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time, that can help young people right at the start of their financial lives."
For those who still want to receive tax-free benefits but were born after that period, you can apply for a Junior ISA instead.
In the 2025 to 2026 tax year, the savings limit for Junior ISAs is £9,000.
However, your child will need to be under 18 and live in the UK to be eligible.
Topics: Money, UK News, Cost of Living
Anish Vij