Thousands still to claim HMRC £2,200 savings account

Many people across the UK are not aware that they can claim the tax-free cash

More than 670,000 are yet to claim their Child Trust Fund. The long-term, tax-free savings account is for children born between September 1, 2002 and January 2, 2011.

It was launched with a £250 deposit from the government when savers were born. The scheme closed in 2011 but many accounts remain untouched and unclaimed.

The average sum in these forgotten accounts is now £2,212, HM Revenue and Customs product (HMRC) said. The government is urging the 18 to 22 year olds who own them to come forward.

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Young people have the option to take control of this account at the age of 16 or withdraw the funds when they turn 18 - when the account matures. Parents can add up to £9,000 a year to these accounts without incurring any tax.

It does not affect any benefits or tax credits parents may receive. The savings are held in banks, building societies or other saving providers.

The money stays in the account until it is withdrawn or re-invested. If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly.

You can use this online tool on GOV.UK to find out your Child Trust Fund provider. Young people will need their National Insurance number – which can be found using the HMRC app - and their date of birth to access the information.

Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive, said: "Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible.

"You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK." Gavin Oldham, of The Share Foundation, said: "If you are 18-21 years old, the government would have put money aside for you shortly after birth.

"This investment would have grown quite a bit and it’s in your name. The Share Foundation has linked over 65,000 young people to their Child Trust Fund accounts. It’s easy and free to find out where your money is.

"Go to findCTF.sharefound.org or GOV.UK to locate it today."