We all dream of discovering a stash of hidden money somewhere. And if you're between the ages of 12 and 20, or are the parent of children this age, then your dreams could be about to come true.
According to Money Saving Expert Martin Lewis, you could be one of up to a million people “who has a hidden £2,000 in savings that you know nothing about.”
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Lewis says this is all about what’s called the Child Trust Fund, the tax-free savings account available for anyone born between two dates.
The crucial two dates are September 1, 2002, and January 2, 2011.
“These Child Trust Funds were savings which locked money away until you were 18, and some of you will be 18 now,” he said on TikTok.
“Now, you might be thinking ‘but my parents didn't have any money to put in.’ It doesn’t matter because the state started everybody off with at least £250 and for some from lower income backgrounds, £500.”
The money saving expert said of the 6.3m Child Trust Funds that were active, it’s thought up to a million of them are lost, “meaning people have lost track of them, or are unaware that they have them, and that could be you.”
GOV.UK estimates that the average child trust fund has £2,100 in.
However, Mr Lewis says “I think if it was inactive and nobody put money in, you’ve probably got less than that, but it’s still likely to be £300, £400, £500, £1,000 or possibly more.”
Lewis has told people that fall into this category to make sure to check their Child Trust Fund if they’ve not accessed it. To access it, there is a tool available on GOV.UK.
“You just need to search ‘Child Trust Fund’ to get to the tool. From there, parents or guardians of someone aged under 18 can do it for them… you have to be 16 or above to do the search yourself,” he explained.
Parents will need their NI number and government gateway to do it online, but there is an option to do it by post as well.
You should hear back within three weeks from HMRC which bank or building society has your money and will then let you know how you can get access to the cash.
Martin shared a final tip for those under 18 who can’t access the fund just yet, but can still get better interest rates.
If you or your child is under 18, it’s important to note your money is still locked away in the Child Trust Fund, and because that is now a dead account “there isn’t much competition for the interest that can be earned in the savings versions.”
“Check what interest rate your Child Trust Fund is paying and then compare it to the top Junior ISAs, which is the successor product…
“Then you can apply to open a Junior ISA and within that there will be a transfer form… so you now have all the money in the Junior ISA at a higher interest rate,” he advised.
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