Child Trust Funds: many accounts forgotten as Junior ISAs take centre stage
5th October 2022 10:54
by Myron Jobson from interactive investor
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.”
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
Please remember, investment value can go up or down and you could get back less than you invest. If you’re in any doubt about the suitability of a stocks & shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.