There’s good news for teenagers up and down the country as the first group of young people are now eligible to claim their Child Trust Fund.
Children born from September 2002 were given vouchers by the Government in a bid to encourage parents to save for their kids’ future. The government initially put £250 into the tax-free account during a child’s first year, then added another £250 when he or she reached the age of seven. For lower-income families, the payment was £500.
Parents, family and friends could also contribute to the account, up to set limits. The aim of the scheme was for youngsters to have some savings by the time they turn 18 to assist with further education or living alone for the first time.
The scheme ended in January 2011 but those who have just turned 18 will now be able to access the money in the Child Trust Fund. The savings pots could now be worth more than £1,000 or even more if parents added to the contributions.
While teenagers are now entitled to withdraw the money if they wish, many are probably unaware that they even have a trust fund. For those who don’t make a claim, the Child Trust Fund provider will move the money into an Individual Savings Account (also tax-free) or roll in into another account with similar benefits.
For more information about the scheme including how to manage an account or add money to it, please head to gov.uk.
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