Urgent £1.4bn warning to thousands of people born between 2002 and 2011

Thousands of young people have money sitting in a savings account they probably know nothing about - and now people are being urged to check.

A whopping 728,000 have money sitting in a tax-free savings account that many don't even know about. If you were born in the UK between September 1, 2002 and January 2, 2011, it is likely you will have a Child Trust Fund (CTF) account.

The scheme was launched by the government to encourage children to develop a 'savings habit throughout adulthood', and saw each account start with a minimum of £250 (or £500 for children from lower income families). Even if your parents did not set up an account for you, HMRC would have created one on your behalf. New figures found £1.4 billion remains unclaimed, with the average amount in Child Trust Funds estimated to be around £2,000 due to interest over the years and additional money added by family and friends. According to the BBC, calls for pay-outs to be made automatically are getting louder - and have even caught the attention of politicians.

MP Sir Geoffrey Clifton-Brown told Radio 4's Money Box he's on board with an automatic pay-out system, stating: "I liken this money a bit to a treasure trove buried on a [desert] island in vast acres of sand expecting the poor recipients on these Child Trust Funds to go and find this money. I think there is a lot more we could do to encourage the government to find the recipients."

A spokesperson for HMRC reportedly said such a scheme was complex, adding: "For HMRC to close these accounts, obtain the savings in those accounts and transfer them with or without the owner's consent would require careful legal consideration." The Share Foundation charity, which also calls for automatic pay-outs, has helped more than 50,000 young people locate their money - worth over £100 million.

20-year-old Latonya Skye-Paterson recently discovered she had a staggering £955 in a Child Trust Fund that she never knew existed - after speaking to her college tutor. You can read her story here.

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Can I still open a Child Trust Fund?

The Child Trust Fund scheme closed in 2011. However, if you opened one before this, you can continue to add up to £9,000 a year to an account. "The money belongs to the child and they can only take it out when they’re 18," GOV UK explain. "They can take control of the account when they're 16. There's no tax to pay on the Child Trust Fund income or any profit it makes. It will not affect any benefits or tax credits you receive."

How can I find my Child Trust Fund?

If you know your Child Trust Fund provider, contact them directly. Ask your parents or guardians to see if they remember, as this will be the fastest way to check your account. "You can also ask HM Revenue and Customs (HMRC) to find a Child Trust Fund provider," GOV UK added. "They can tell you where the account was originally opened." To ask HMCRC to find your Child Trust Fund provider, click here.

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