Tens of thousands of young people are unaware they could have £1,000 sitting in a Child Trust Fund (CTF) dating as far back as 2002.
Latest figures show 100,000 teenagers are missing out on money that was invested on their behalf as part of policy introduced in the early 2000s.
Parents of children born between September 2002 and January 2011 were handed vouchers by the government on the day they were born – and while millions of them have since been accessed, thousands have been left forgotten.
New figures show 140,000 teenagers are missing out on a combined £209.5million.
On average, accounts which have matured now hold around £1,500 each according to HMRC figures.
But it is estimated that one in six young people don't even know about their personal nest egg.
Some 139,683 teens could be missing out on a pile of free cash, according to finance firm Hargreaves Lansdown.
In September HMRC said that figure was £171million, with 114,000 teenagers none the wiser about their CTF.
But the accounts mature when you reach the age of 18 - and around 55,000 are eligible to access their cash each month.
At this point, their owners can withdraw funds or transfer savings into an adult ISA.
In many cases, parents or guardians set up these accounts with Child Trust Fund Providers when the young person was born – usually banks, building societies or investment managers.
Have you searched and found a forgotten account? Get in touch: emma.munbodh@mirror.co.uk
If an account was not opened by the child’s parent, HMRC set one up on the child’s behalf.
Between 2002 and early 2011, about six million CTFs were opened by parents or guardians, with a further million set up by HMRC.
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 get help from HMRC to track down your provider online.”
What is a Child Trust Fund?
Under the scheme, parents and guardians with kids born between 2002 and 2011 received a voucher to deposit into a CTF account on behalf of their child.
Vouchers were worth between £50 and £1,000 depending on when children were born, as well as whether parents were on a low income at the time.
These needed to be invested in special CTF accounts provided by a variety of banks and investment companies, with parents choosing between a cash or stock and shares version.
Where parents failed to deposit vouchers, HMRC will have done so for them.
At 16 years, a child can choose to operate their CTF account or have their parent or guardian continue to look after it, but they cannot withdraw the funds. At 18 years of age, the CTF account matures and the child is able to withdraw money from the fund or move it to a different savings account.
How much was put in?
The government initially put £250 into a tax-free account when the child was born, then added another £250 when he or she reached the age of seven.
For lower-income families, the payment was £500.
Parents, family and friends could also contribute to the account, up to set limits.
How much is in them now all depends on what the government put in in the first place, whether your parents added to it and any gains you’ve accumulated over the years.
Have I got a lost account?
Any young people unsure about whether or not they have a CTF should first ask a parent or guardian if they remember setting one up.
Once they know who their provider is, they should contact them directly – and either request to withdraw the money or transfer the funds into an adult ISA or other savings account.
You can use this online tool to check if you have a forgotten account.
The Share Foundation charity also runs a free finding service.
More information on child trust funds is available on through the government-backed Money and Pensions Service.
