It has come to light that families across the nation might be overlooking substantial amounts of money stored in forgotten bank accounts.

Newly released government data reveals that an estimated 758,000 young individuals have sizeable sums of money lying idle in unclaimed Child Trust Funds.

The average untouched fund stands at an enticing £1,980, but there could be even more waiting to be discovered. In the UK, there are approximately 27,000 unclaimed Child Trust Funds holding over £10,000, along with another 280,000 accounts containing more than £1,000, and 57,000 accounts with £5,000.

A recent advisory has been issued to individuals aged between 18 and 23 to verify if they have any overlooked accounts. It is estimated that hundreds of thousands of people could be unaware of substantial savings potentially sitting in unclaimed Child Trust Funds, totaling around £1.5 billion.

Child Trust Funds are tax-free savings accounts established for children born between September 1, 2002, and January 2, 2011. Although the scheme closed in 2011, individuals can still access the funds from their accounts.

Upon turning 16, the child gains control over the account contents as per regulations. By the time they reach 18, the fund matures, giving them the option to either invest or withdraw the money.

At the scheme’s inception, parents received an initial deposit of £250 from the government. With accrued interest and investment growth, these amounts could have grown significantly, potentially transforming into life-changing sums.

“Many unclaimed Child Trust Funds are likely due to lack of awareness among parents and children about the existence of the account, uncertainty about the fund’s provider, or difficulty in locating it,” stated Charlene Young, a senior pensions and savings expert at AJ Bell, in an interview with The Sun.

<p"Over a quarter of accounts were initiated by the government due to parents not setting them up within a 12-month timeframe."

It is advised to be cautious as failing to claim your Child Trust Fund account could result in additional charges. Some providers are imposing lump sum fees for managing these accounts, with many reportedly charging an annual fee of 1.5%.

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