Parents and young people urged to check if they have ‘hidden’ savings windfall

Parents and young people are being urged to check if they have a “hidden pot of gold” in the form of a child trust fund.

It is a year since the first account holders started turning 18 and around 55,000 accounts mature every month, HM Revenue and Customs (HMRC) said.

This means their owners can withdraw funds or transfer savings into an adult Isa. Hundreds of thousands of accounts have been claimed so far.

Child trust funds were set up for children born between September 1 2002 and January 2 2011 with a live child benefit claim.

Parents or guardians set up accounts using vouchers provided by the Government. 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 of the funds 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.”

Some young people may not know they have a fund or some parents may have forgotten who they set the account up with. To help them find their accounts, HMRC has an online tool .

HMRC will also provide alternative, non-digital routes to finding a provider on request.

At 16 years old, a child can choose to operate the account themselves, but they cannot withdraw the funds.

At 18 years of age, the account matures and the child can withdraw money or move it to a different savings account.