HM Revenue and Customs (HMRC) is urging hundreds of thousands of young adults to check whether they have unclaimed savings held in Child Trust Fund accounts.
The department said more than 758,000 people aged between 18 and 23 have not yet claimed their matured accounts.
HMRC said the average value of an unclaimed Child Trust Fund account is around £2,242.
The accounts belong to young people born between September 1, 2002 and January 2, 2011.
HMRC said many account holders may be unaware the money exists or may have lost track of where it is held.
Child Trust Funds were long-term, tax-free savings accounts introduced by the Government for children born during the qualifying period.
Each eligible child received an initial Government payment of at least £250 when the account was opened.
Some children received a higher initial payment depending on household circumstances at the time.
HMRC have closed the scheme to new accounts
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GETTYThe accounts were designed to give young people a financial asset when they reached adulthood.
Although the scheme closed to new accounts in 2011, existing funds have continued to grow.
Parents, family members and guardians were able to contribute additional savings to the accounts.
Up to £9,000 a year could be added, with all interest and investment growth remaining tax-free.
The money in a Child Trust Fund legally belongs to the child named on the account.
Account holders are not able to withdraw the money until they reach the age of 18.
From the age of 16, young people are allowed to take control of how their account is managed.
Once the account holder turns 18, the Child Trust Fund officially matures, at which point no further contributions can be made to the account.
Young adults then have the option to withdraw the money or transfer it into an adult ISA.
If the money is moved into an ISA, the Child Trust Fund account is closed.
Until action is taken, the funds remain locked in the account and cannot be accessed by anyone else.
HMRC said the accounts are held by banks, building societies and other approved savings providers.
The money is not held directly by the Government.
HMRC is encouraging eligible young adults to search online to locate their account.
The department said people should search “find my Child Trust Fund” on GOV.UK.
The accounts belong to young people born between September 1, 2002 and January 2, 2011
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GETTYThe online service allows users to request details of where their account was originally opened.
To use the service, individuals need their National Insurance number and date of birth.
HMRC said submitting a request typically takes around five minutes, with most people receiving a response within three weeks.
Angela MacDonald, second permanent secretary and deputy chief executive at HMRC, said many young adults could be missing out.
Ms MacDonald said: “If you are between 18 and 23, you could be sat on a savings payout and not even realise it.”
She added: “Just search ‘find my Child Trust Fund’ on GOV.UK to find your savings account today.”
HMRC said young people can also ask their parents or guardians if they are unsure where their account is held.
Experts say the extra money could go a long way as young people face financial challenges
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GETTY
The department said some families may still have paperwork or records from when the account was opened.
Shelley Doorey-Williams, chief executive at the London Foundation for Banking & Finance, said the unclaimed funds could make a difference.
“With an estimated average of £2,242 waiting in unclaimed accounts, this is real money at a crucial time for young people.”
She said the funds could help support people at the start of their financial lives.
HMRC said it wants as many eligible account holders as possible to claim what they are entitled to.
The department said checking takes little time and could unlock savings built up over many years.