Commenting, Myron Jobson. Senior Personal Finance Analyst, interactive investor, says: “Many young adults might not be aware that there is a cash pot in their name waiting to be claimed. With the typical CTF valued at £2,000, this cohort could be sleeping on a decent amount of money that could boost their financial resilience amid the cost-of-living crisis.
“In many cases, CTFs have been forgotten along the way as Junior ISAs took centre stage.
“But the value of CTF could be eroded the longer they are left untouched because of charges levied on the account. The National Audit Office estimates that CTF providers could be earning collectively up to £100 million per year through charges on accounts – so it pays to act quickly.
“If you know the provider where the Child Trust Fund is held, the first port of call should be contact them directly. If you don’t, you can ask HMRC. They can tell you where the account was originally opened.
“For the youngest holders, there are still six years before their Child Trust Fund reaches maturity. If you hold a Child Trust Fund for your child, it is worth considering transferring to a Junior ISA. It is a no-brainer in most instances as Junior ISAs tend to have better rates on cash savings, more investment options and lower charges.”
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