Hundreds of thousands of young people are being urged to check if they’re sitting on unclaimed pots of cash worth £2,200 on average.

Child trust funds (CTFs) were savings accounts set up for children born between September 1, 2002 and January 2, 2011. The government wanted to ensure young people turned 18 with a savings account at the ready.

Most youngsters got £250 each from the state, while those in lower-income families or local authority care got an additional £250.

Young people can withdraw from these pots when they turn 18. The money stays there until it’s taken out or re-invested.

HM Revenue and Customs (HMRC) said today that roughly 671,000 young adults may have forgotten about their savings accounts, or not even be aware they exist, so have no idea their CTFs have major windfalls.

‘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,’ Gavin Oldham, of The Share Foundation, said.

‘We want to reunite young people with their money and we’re making the process as simple as possible,’ added the revenue body’s Second Permanent Secretary and Deputy Chief Executive, Angela MacDonald.

‘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.’

What is a Child Trust Fund?

Child Trust Funds were introduced in 2005 as a way for the government to encourage saving for children. The scheme was open to all children born between September 1, 2002 and January 2, 2011, regardless of their family's income.

The government provided an initial contribution of £250 to each child's CTF, and an additional £250 when the child turned seven. Parents or guardians could also contribute to the fund.

How to Claim Your Unclaimed Child Trust Fund

If you think you might have a CTF, you can use the HMRC's online tool to locate your account. You'll need your National Insurance number and date of birth.

If you know who your provider is, you can contact them directly.

HMRC has warned against using third-party agents to search for CTFs. These agents often charge high fees, which could eat into your savings.

What Happens to the Money in a CTF?

The money in a CTF grows tax-free until the account holder reaches 18 years old. At this point, they can withdraw the money or leave it in the account to continue growing.

How to Find Out More About Child Trust Funds

More information on how to access Child Trust Funds can be found on GOV.UK.

Conclusion: Don't Miss Out on Your Savings

If you're a young adult, it's worth checking to see if you have an unclaimed Child Trust Fund. It could be worth thousands of pounds.

Claiming your CTF is a simple process, and it could give you a much-needed financial boost.