Recent findings have unveiled that families nationwide might be overlooking substantial amounts of money stored in forgotten bank accounts.
Government data indicates that an estimated 758,000 young individuals have substantial funds lying untouched in Child Trust Funds. The average unclaimed sum stands at an enticing £1,980, with a significant number of accounts holding even larger amounts. In the UK, there are approximately 27,000 unclaimed Child Trust Funds exceeding £10,000, along with 280,000 accounts holding over £1,000, and 57,000 containing £5,000.
Individuals aged between 18 and 23 are urged to promptly check for any dormant accounts they may possess. The government emphasizes that there could be hundreds of thousands of people unknowingly sitting on substantial savings, with an estimated £1.5 billion remaining unclaimed in Child Trust Funds.
Child Trust Funds, tax-free savings accounts established for children born between September 1, 2002, and January 2, 2011, remain accessible despite the scheme’s closure in 2011.
Upon reaching 16 years of age, the child gains control over the account’s contents. By the time they turn 18, the account matures, allowing them to choose whether to invest or withdraw the funds.
Parents initially received a £250 deposit from the government at the scheme’s inception. Through interest and investment growth, these sums have potentially grown into life-changing amounts.
Charlene Young, a pensions and savings expert at AJ Bell, highlighted that many unclaimed Child Trust Funds result from lack of awareness about the account’s existence, the provider, or how to locate it. She also noted that over a quarter of accounts were established by the government due to parents’ failure to do so within the designated timeframe.
It is crucial to note that neglecting to claim a Child Trust Fund account could lead to additional charges. Various providers impose management fees, with reports indicating that many charge an annual fee of 1.5%.
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