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HMRC urges teenagers to collect savings potentially worth thousands of pounds

On average, these accounts are thought to be worth around £2,100 and can be accessed once the recipient turns 18

Furvah Shah
Friday 07 October 2022 06:42 EDT
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HMRC estimates that around 6.3 million Child Trust Fund accounts were set up and could be worth a total of around £9 billion (Dominic Lipinski/PA)
HMRC estimates that around 6.3 million Child Trust Fund accounts were set up and could be worth a total of around £9 billion (Dominic Lipinski/PA) (PA Archive)

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Teenagers are being urged by HMRC to collect savings potentially worth thousands of pounds.

Matured Child Trust Funds are long-term, tax-free savings accounts set up for every child born between September 1 2002, and January 2 2011, made to help young people save money with the government adding an initial deposit of at least £250.

HMRC’s Second Permanent Secretary and Deputy Chief Executive, Angela MacDonald said: “Teenagers could have a pot of money waiting for them worth thousands of pounds and not even realise it.

“We want to help you access your savings and the money you’re entitled to.”

On average, these accounts are thought to be worth around £2,100 and can be accessed once the recipient turns 18.

Teenagers can access their accounts once they turn 18
Teenagers can access their accounts once they turn 18 (PA Wire)

HMRC estimates that around 6.3 million Child Trust Fund accounts were set up and could be worth a total of around £9 billion.

Families can pay in up to £9,000 a year untaxed into the account.

To access the Matured Child Trust Fund, those aged 16 and 17 can take control of the account, but can only withdraw money once aged 18 or older.

To access the account, savers can contact the Child Trust Fund provider directly if they, or their parents or guardians, know who the account is with.

Or, if they don’t know, they can ask HMRC and find out more information on GOV.UK.

Once the recipient turns 18, no more money can be added to the account and the money must be transferred or removed.

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