HMRC issues £2,200 savings alert with cash on offer to thousands | Personal Finance | Finance

HM Revenue and Customs (HMRC) has urged people with a Child Trust Fund to cash in on the money if they’re eligible as many people may not be aware their account exists.

According to HMRC, over 600,000 people could be sitting on pots worth around £2,212 on average.

In a new post on X, HMRC stated: “New year, new bank balance?

“If you’re aged 18 to 22, you can now claim your #ChildTrustFund – worth an average of £2,200.”

Child Trust Funds are long-term, tax-free savings accounts set up for children born between September 1, 2002, and January 2, 2011, with an initial £250 contributed by the Government.

Account holders can take control of their funds at 16 and withdraw the money once they turn 18.

The accounts are not held by the Government but by banks, building societies, or other savings providers. The funds remain in the accounts until they are withdrawn or reinvested.

HMRC is advising people to search for their accounts using the free “Find your Child Trust Fund” tool on GOV.UK .

There is no charge for locating these funds, and users do not need to pay third-party agents who may charge fees of up to £350 or 25% of the account’s value.

Third-party services can reduce the amount received and may delay the process, as users still need to provide agents with the same information required to locate the accounts themselves.

For those who already know their Child Trust Fund provider, contacting the provider directly is the quickest option.

Those unsure can use the GOV.UK online tool with their National Insurance number – easily accessible via the HMRC app – and date of birth to find their account.