FCA Urges Young Adults to Check for Unclaimed Child Trust Funds

Thousands of young adults could have forgotten savings waiting to be claimed, as the Financial Conduct Authority (FCA) urges people returning to college and university to check whether they have an unclaimed Child Trust Fund.

According to figures from HM Revenue & Customs (HMRC), around 760,000 matured Child Trust Funds remain unclaimed, with an average value of approximately £2,000.

Thousands of Young People Could Be Missing Out

Child Trust Funds were long-term savings accounts created for eligible children. Once an account matures, the money belongs to the account holder and can provide a valuable financial boost as young people begin adult life.

For students, the savings could help cover the cost of a new laptop, textbooks, rent deposits, everyday living expenses, or other costs associated with college and university. Alternatively, the money could provide a foundation for longer-term savings.

How Much Could Be Waiting to Be Claimed?

With approximately 760,000 matured accounts still unclaimed and an average balance of £2,000, a significant amount of savings remains waiting for young people to access.

Some account holders may not even realise that a Child Trust Fund exists in their name, particularly if their parents opened the account many years ago.

Beware of Companies Charging to Find Your Money

The FCA is also warning consumers about companies offering to locate and claim Child Trust Funds on their behalf.

Some businesses, including firms advertising through social media, charge substantial fees or take a percentage of the money recovered. The FCA has seen cases where customers were charged as much as £400 simply to locate their account.

Some firms have even charged monthly subscription fees for what is essentially a one-off tracing service.

You Can Find Your Child Trust Fund for Free

Young adults do not need to pay a claims company or middleman to locate their Child Trust Fund.

The account can be traced for free through the official government service, allowing eligible account holders to access their savings without giving away part of their money to a third party.

The FCA is encouraging anyone who may have a Child Trust Fund to check their account before paying a company to provide a service they can complete themselves at no cost.

FCA Warns Against Unnecessary Fees

Chris Knight, Director of Insurance at the FCA, said that Child Trust Funds can provide useful financial support at a time when many young people face significant expenses.

However, he warned that there is no reason for consumers to hand over a portion of their savings to a claims company when they can trace and access their own account for free.

How to Check for an Unclaimed Child Trust Fund

Young people aged between 15 and 24 are encouraged to search for the official government service by searching “find my Child Trust Fund” on GOV.UK.

Parents may also want to check whether they opened a Child Trust Fund on behalf of their children and ensure that the account has been successfully transferred or claimed when appropriate.

Don’t Pay to Access Your Own Savings

An unclaimed Child Trust Fund could provide a valuable financial boost as young adults begin university, enter the workplace, or take their first steps toward financial independence.

Before paying a company to locate or claim an account, consumers should check the free government service first. Accessing money that belongs to you should not require giving a significant percentage of it to a third party.