Find Child Trust Fund: how to check and claim a £250 HMRC UK government account on gov.uk - CTFs explained

• 671,000 young adults aged 18 - 22 have unclaimed Child Trust Fund accounts
• HMRC says these have an average value of £2,212
• CTFs were set up for children born between 1 September 2002 and 2 January 2011
• They contain government contributions of £250 or more
• The money remains in accounts, held by banks or financial providers, until withdrawn or reinvested at age 18
• HMRC is urging young adults to check for unclaimed savings using an online tool on gov.uk

Around 671,000 Gen Zers could be sitting on a pot of unclaimed savings worth over £2,000, according to HM Revenue and Customs (HMRC).

HMRC is urging young adults aged 18 to 22-years to check their accounts for unclaimed savings in Child Trust Funds (CTFs), which hold an average balance of £2,212.

Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: “Thousands of child trust fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible.”

But what is a CTF? How can you check whether you have any savings under the scheme, and what should you do next? Here is everything you need to know about it...

What is a CTF?

A Child Trust Fund is a long-term savings or investment account introduced by the UK government for children born between 1 September 2002 and 2 January 2011.

Their aim is to encourage saving for a child's future, and each eligible child received a starting contribution from the government - typically £250, with an additional £250 for those from low-income families or in local authority care.

Parents, guardians, family members, and even the child themselves (once they are 16) can contribute to the accounts.

The funds are held by banks, building societies or other providers and remain there until withdrawn or re-invested.

The savings in a CTF are tax-free, and the funds are locked away until the child reaches the age of 18, at which point they can withdraw or reinvest the money. The scheme was replaced by Junior ISAs in 2011, but existing accounts continue to grow.

How can I check if I have a CTF?

It is thought many young people may have forgotten about their CTF accounts, or are unaware one was opened for them in the first place.

If you already know which bank, building society or financial institution is holding your CTF, you can reach out to them to check the account status. If you don’t, check with your parents or guardians, they might know which provider holds your account.

If you do not know where your account is, you can use an online tool on gov.uk. You will need your National Insurance number and your date of birth to access the information.

You don’t not need to pay any money to find your account; HMRC has warned that third-party agents are offering services to help find CTFs, but these may come with fees which could include a portion of the value of the savings account.

MacDonald said: “You don’t need to pay anyone to find your child trust fund for you, locate yours today by searching ‘find your child trust fund’ on gov.uk.”

What can I do with the money?

Charlene Young, a pensions and savings expert at AJ Bell, said: “Once you’ve tracked down the money you can choose what to do with it. Your options are to transfer it to an adult Isa or withdraw the money.

“Until then, your money will just sit in an account that no-one else has access to, possibly paying very high charges. Anything you transfer to an adult Isa at maturity will not count towards your annual Isa allowance, which is £20,000 for over-18s.

She said it could “make sense” for some under-18s who hold a CTF to transfer it to a junior Isa, where the choice of investments could be wider.

Young added: “The money will still be locked up until you turn 18, but the tax-free benefits of Isa investing still apply. You can transfer the entire CTF into a junior Isa and still add up to £9,000 to it in the same tax year.”

Have you checked if you have a Child Trust Fund waiting for you? Share your experience in the comments section!