Thousands of Welsh teenagers could be set for a windfall in the coming weeks thanks to Child Trust Funds they might never have known they had.
According to HM Revenue & Customs (HMRC), around 6.3 million funds have been set up in the UK in the past 18 years. Around 4.5 million have been set up by parents or guardians and a further 1.8 million by HMRC itself on behalf of the young people.
In Wales alone, there are around 273,000 Child Trust Fund accounts - and some children might not even know there is money there waiting for them once they turn 18.
The funds were originally set up for children with a live Child Benefit claim who were born between September 1, 2002 and January 2, 2011.
They were set up to “encourage positive financial habits and a saving culture” among young people, and parents and guardians received a voucher - either for £50 or £250 depending on when the account was started - to deposit in the trust fund on behalf of their children.
The amounts in them now will depend on interest rates over the period the money has been in the account, along with how much in additional funds has been added.
From September 1, children turning 18 will be able to access the money in their accounts - around 55,000 of which will mature each month.
“We want to make sure all young people can access the money which has been set aside for them, to invest in their future and continue a savings habit, as they turn 18,” economic secretary to the treasury, John Glen, said.
“If you’re unsure if you have an account or where it may be, it’s easy to track down your provider online.”
When turning 16, children can chose to operate their account if they wish, but they cannot take out any funds until they turn 18, at which point the trust fund matures and they are able to withdraw the funds or move them to a different savings account.
If you are not sure whether you or your child has an account that is maturing soon you can use the HMRC’s online tool.
The accounts themselves are not held by HMRC, but by a number of child trust fund providers which are financial services firms.
