TENS of thousands of teens are missing out on free cash.
They could be getting the money through their Child Trust Funds (CTF).
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HMRC is urging teenagers to check if they have one of these accounts, as many might not be aware they have one.
On average, each account is worth £2,100, so it’s definitely worth checking if you’re owed anything.
CTF’s are a type of savings account that used to be available for children.
Angela MacDonald, from HMRC, said: “Teenagers could have a pot of money waiting for them worth thousands of pounds and not even realise it.”
The government automatically opened CTF accounts for any children born between September 1, 2002, and January 2, 2011.
All of these children automatically received a £250 voucher and lower income families got £500.
Parents could decide whether the lump sums would be invested in stock or shares or saved in cash when the accounts were opened.
These accounts are no longer available unless you already have one.
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Families can also add up to £9,000 a year tax-free into the accounts so they’re worth more when they mature.
Roughly 6.3million CTF accounts containing around £9billion were set up during the scheme.
CTF’s don’t let you access the cash until the child turns 18, and the first tranche of teenagers were only allowed to access their accounts from September 2, 2020.
Each year the cash becomes available to teens turning 18.
How do you claim the money?
Teenagers aged 16 or over can take control of their own CTF account, however the funds can only be withdrawn once they turn 18.
The money will stay in there until it is claimed.
If you are eligible to withdraw the money, there are some different options you can take.
If you already know who your CTF provider is, you can contact them directly.
This might be a bank, building society or other savings provider.
Alternatively, you can visit gov.uk where you can fill out an online form to find out where the fund is.
If a parent or guardian couldn’t set up an account for you, don’t worry, as one would have been set up for you automatically.
We revealed how one bank is now offering a market-leading saving rate of 4.11% on savings of £50 or more.
Plus, a major high street bank and a building society are giving customers £200 in free cash to switch their current accounts.
