£400million rotting away in old Child Trust Funds

PARENTS are being urged to move Child Trust Fund (CTF) cash into Junior Isas (Jisa).

Almost £400 million is sat in unclaimed CTFs with an average balance of £1,911, a new Government report shows.

More than £9.7 billion has been saved into CTFs since they were introduced by the Government 20 years ago.

The scheme gave 6.3 million children born between September 2002 and January 2011 a £250 voucher to kick- start their savings. Parents could then pay an additional £9,000 a year into the account, which matures on their child’s 18th birthday.

To track down lost accounts visit gov.uk/child-trust-funds. You will need a Government Gateway ID.

Once you’ve tracked down the money, experts say it makes sense to transfer it to a Jisa as charges are far lower and there’s more investment choice.

If you do decide to transfer a CTF to a Jisa you’ll need to move the entire balance.