Child Trust Funds: many accounts forgotten as Junior ISAs take centre stage
5th October 2022 10:54
by Myron Jobson from interactive investor
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Young people could have an average of £2,100 in their Child Trust Fund account waiting to be claimed.
- Teenagers could have an average of £2,100 in their Child Trust Fund savings account waiting to be claimed, according to HMRC.
Commenting, Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Many teenagers might not be aware that there is a cash pot in their name waiting to be claimed as 1.8 million of the around 6.3 million Child Trust Fund accounts set up throughout the duration of the scheme were done so by HMRC, where parents or guardians did not open an account.
- Learn how to: Open a Junior ISA | Transfer a CTF to Junior ISA | Junior ISA Allowance
"Many others have been forgotten along the way as Junior ISAs took centre stage.
“The fact that the majority of Child Trust Fund subscriptions were in the £1 to £249 band and around 4.6 million received no subscription in the 2020-21 tax year, the latest available figures, fuel concerns that accounts have been forgotten about or lost.
“For the youngest holders, there are still eight 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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