More than £9bn is “languishing” in child trust fund accounts, and many people would be better off moving their cash elsewhere, it was claimed this week.
On Tuesday, HM Revenue and Customs published official data showing there were just over 6.1m CTF accounts in existence, and that the average sum in each was £1,500. These figures, the latest available, go up to April last year.
The majority of accounts – more than 5.1m – did not have any money paid into them during the 12 months from April 2019 to April 2020. That suggests some have been forgotten, and that many youngsters may be unaware there is a pot of cash with their name on it.
If your child’s CTF account has slipped off your radar of late, maybe now is the time to check how it is getting on.
Launched by the Labour government in 2005, child trust funds – or baby bonds – were long-term tax-free accounts designed to help children learn about saving and build up some cash before their 18th birthday.
Every child born between 1 September 2002 and 2 January 2011 was awarded a cash endowment from the state. For most,…
