Many families across the nation may be overlooking substantial amounts of money in forgotten bank accounts, a recent revelation has shown.
As per newly released government data, an estimated 758,000 young individuals are believed to have sizeable sums of money tucked away in unclaimed Child Trust Funds. The average unclaimed fund stands at an enticing £1,980, with a significant number of accounts containing even more substantial amounts. In the UK, there are approximately 27,000 unclaimed Child Trust Funds exceeding £10,000, along with an additional 280,000 accounts holding over £1,000 and 57,000 accounts with £5,000.
A prompt advisory has been issued to individuals aged 18 to 23 to verify if they possess any potentially forgotten accounts. The government asserts that hundreds of thousands of people could be in possession of substantial savings without being aware, with an estimated £1.5 billion lying dormant in unclaimed Child Trust Funds.
Child Trust Funds are tax-free savings accounts established for children born between September 1, 2002, and January 2, 2011, with the scheme closing in 2011. The funds become accessible once the child reaches 18 years of age, allowing them to decide whether to invest or withdraw the money.
Parents initially received a £250 deposit from the government at the inception of the scheme, which may have grown significantly through interest and investment over time.
“Many unclaimed Child Trust Funds are likely due to lack of awareness among parents and children regarding the existence of the account, as well as uncertainties about the account provider and tracking procedures,” mentioned Charlene Young, a senior pensions and savings expert at AJ Bell.
It is important to note that neglecting to claim Child Trust Fund accounts could result in extra charges, as various providers levy fees for managing these accounts, with annual charges reportedly reaching 1.5%.
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