It’s common knowledge that not all content on social media is trustworthy. When Tayo Olutunde stumbled upon a video discussing Child Trust Funds on TikTok two years ago, he was hesitant about its authenticity.
Now, after some research, the accounting and finance student has unexpectedly found himself over £2,000 richer by uncovering a dormant Child Trust Fund.
Child Trust Funds were savings accounts provided to children born between September 1, 2002, and January 2, 2011. Each child received a voucher worth £250 or £500 for those from lower-income families.
In cases where parents failed to open a Child Trust Fund, HMRC would have initiated one on the child’s behalf, leading many individuals to be unaware of owning such accounts.
Around 670,000 unclaimed Child Trust Funds are held by young adults, with an average balance of approximately £2,200 per account.
Speaking to The Mirror, Tayo, a 22-year-old resident of Leeds, shared: “I first learned about Child Trust Funds on TikTok two years ago. I was intrigued but skeptical, so I initially left it aside, thinking it was too good to be true.
“However, I recently discussed it with my mom, who confirmed that I indeed have an account.”
Locating a Child Trust Fund is usually straightforward, but in cases of frequent address changes, additional paperwork may be necessary, as Tayo experienced. Nevertheless, the effort proved worthwhile in the end.
He explained: “Having moved homes frequently as a child, including a stint in Nigeria, then returning to the UK, it took me about a month or two of emails and postal correspondence to trace it.
“The account held slightly over £2,000. I spent £500 on a trip to Milan with friends last year, and the remainder was invested.”
Tayo emphasized: “Why pass up free money? Discover your account’s value. Even if unused, consider better investment options.”
Access to a Child Trust Fund is granted upon turning 18. While opening a new one isn’t possible, contributions can continue to an existing account.
WHATSAPP GROUP: Stay updated on financial news