Martin Lewis issued an important warning to everyone between 13 and 22 that they may be unaware that thousands of pounds are held in a child trust fund.
The financial expert expressed that about 670,000 people between 18 and 22 have untouched Child Trust Funds. It has an average balance of 2,212 Pounds.
The founder of money-saving expert, Lewis, cautioned against organizations offering to access the fund for a fee, affirming that the process is free. The tax-free savings account was crafted for children born between September 1, 2002, and January 2, 2011.
In a video posted on Twitter, Martin stated that that is an important warning for everybody aged 22 and under.
He also added that anybody may have 2,000 Pounds in a Child Trust Fund that he/she doesn’t know about. and he/she can get the money out for free.
He continued that he has started to see adverts and videos on social media from firms trying to change the eligible individuals to access his/her own money. He added that people shouldn’t touch them and shouldn’t sniff them, shouldn’t smell them, and even shouldn’t go near them.
Martin Lewis assured that claiming the Child Trust Fund is a straightforward process that can be done independently. The Child Trust Fund scheme was launched with a 250-pound government deposit and closed in 2011.
However, several accounts remain unclaimed, according to a report by Birmingham Live.
Young people can take over the accounts at 16 and withdraw the funds when they turn 18. Parents can contribute up to 9,000 Pounds annually to these accounts without worry of tax implications. Moreover, these contributions will not impact benefits or tax credits.
The Child Trust Funds are securely held with building societies, banks, or other financial institutes until they are withdrawn or reinvested.
Martin Lewis explained that children’s parents can put money in the accounts but everyone was also given a sum by the state to start it off.
