Over a third of young adults under 30 may be sitting on these unclaimed dollars. This comes at a time when the Child Trust Fund scheme is finally maturing. As Laura Pomfret explained recently, thousands of children could have thousands of pounds sitting in unclaimed trust funds, waiting for them. Estimates from HM Revenue and Customs (HMRC) indicate that approximately 671,000 accounts still go unclaimed. The total value of these unclaimed accounts is remarkable – £1.4 billion – with each account averaging over £2,200.
Through its unique design, the Child Trust Fund gives beneficiaries agency by enabling children to access their funds directly once they reach 18 years of age. Once they hit this milestone, they face all sorts of choices with their dollars. Under rules first implemented in October 2020, they can redeem the cash outright. They can move it into an adult ISA or leave it with their current provider. This kind of flexibility allows young adults to pay for the things that matter most to them out of their savings.
There are some important restrictions on funding for these accounts. Participants can register to do a maximum of £300 worth of deposits per day, with a monthly limit of £600. In a single year, no more than £7,200 can be paid into a Child Trust Fund account. These limitations are designed to promote prudent investment, while still offering considerable growth potential for the money.
So even if you don’t know if you have a Child Trust Fund, keep reading! As we’ll show you, it’s pretty easy to find out with a free government service known as “Find a Child Trust Fund.” This free service helps people locate their accounts and makes it easy to reclaim any unclaimed money. Moreover, HMRC will be writing to each account holder within the next few weeks to tell them which account provider is responsible for their account.
Lloyds Banking Group customers are now better able to switch and control their finances with ease. This exciting new innovation smooths the path to truly simple financial management. They can deposit cash at nearby PayPoint stores, with the deposited funds showing up in their accounts within two hours. This new option makes it easier for customers to access their funds and makes the deposit process more convenient for account holders.
