Young adults sitting on forgotten windfalls worth £2,310 on average

As HM Revenue and Customs (HMRC) has disclosed that around 827,000 young adults have a matured Child Trust Fund account waiting to be claimed, Charlene Young, senior pensions and savings expert at AJ Bell, says it’s worth switching these to a Junior ISA.

She said: “If you were born, or if you have a child who was born, between September 1, 2002 and January 2, 2011, there could be a CTF waiting to be found. You can track it down through the tool on the government website. You need to sign in through the government gateway and then complete a form and they’ll let you know where the money is, so you can get in touch and claim it.

“If you’re doing this for a child under 18, once you’ve found it, it’s well worth considering a switch to a Junior ISA. Both accounts have the same tax benefits and the same annual limit. In both cases the money is locked away until the child is 18, at which point it belongs entirely to them. Cash Junior ISAs tend to offer better rates but Stocks and Shares Junior ISAs tend to be cheaper and offer far more investment choice – so your child can build an understanding of investment as well as a nest egg for early adulthood.”