A CIVIL servant has described the moment she realised she had a hidden account worth £15,000.
Karen Karbitz, 49, was doing a clear out of old paperwork in 2019 and stumbled on a statement about a stocks and shares ISA.
But, like thousands of others who lose track of pension, bank and life insurance accounts, Karen had completely forgotten about the ISA.
After a quick call to Quilter, which runs the account, Karen discovered the £7,000 she had first put in in 2008 was worth £15,000.
It was all well and good but Karen, from Hertford, was actually seconds away from binning the statement from Quilter.
The married mother-of-two, an eight-year-old and 16-year-old, said: "I was relieved, I'm not joking.
"I had two piles of paper, one to throw and one to keep, and it was pretty close to going in the bin.
"The money would still be there, but I wouldn't know about it, and they (Quilter) wouldn't know that I wouldn't know about it."
ISAs stands for Individual Savings Account, and their main advantage is that you earn tax-free interest on them as they mature.
You can set up them up through your bank, building society or investment manager.
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But each of them has its own advantages – for example, stocks and shares ISAs, what Karen has, can yield high returns.
Karen added a further £5,000 to the stocks and shares ISA after rediscovering it in 2019 – now it's worth £19,500.
That said, she has no plans to withdraw the cash any time soon.
"It went up to £21,000 on 11th November 2021," she said.
"That's been the most it's been worth – it's worth £19,500 now.
"So I refuse to take any money out until it goes over £21,000.
"If it goes above £21k we will take it out for a new kitchen or car. But other than that we won't. At the moment that's our savings."
What is a stocks and shares ISA?
A stocks and shares ISA is worthwhile if you are looking to put your money into investment funds and don't want to withdraw from it too soon.
You can add a maximum of £20,000 a year.
It's worth noting that returns on stocks and shares ISAs can be higher than other ISAs.
This is because they are attached to the success of an investment fund.
But that also means the value of the ISA can plummet quickly too.
If you don't mind taking a bit more of a risk with your money, a stocks and shares ISA might suit you.
You can buy a stocks and shares ISA directly through a fund manager, discount broker, fund supermarket or bank, or a financial advisor.
You can also get one through an online share account or stockbroker too.
How else can I find lost cash?
It's not just ISAs worth thousands that might be hiding amongst all your paperwork or lost in the ether.
Old pensions, Child Trust Funds, bank accounts and life insurance policies can offer up an unexpected cash boost.
Here are a few ways you can find the cash from old accounts.
Lost bank account
Websites like www.mylostaccount.org.uk let you trace any lost money from bank accounts for free.
But you'll need your sort code and account number to hand, and the bank you think the money is with.
Plus, once you find the account, you will have to provide an ID to prove you can legally claim the money.
Then it will be reopened and you can reclaim the lost cash – including any interest.
Alternatively, if you know the bank your lost account is with, you can just call them.
If both of these options fail, you can go to the Financial Ombudsman Service which might be able to trace an account for you for free.
Child Trust Fund
Youngsters can claim the money from their Child Trust Fund when they turn 18.
The accounts were set up for children born between September 1, 2002 and August 2, 2010.
Those who set up accounts were given a government bonus worth £250 when the child reached the age of seven.
Children born between August 3, 2010 and January 2, 2011, got £50.
Lower income families received more.
But figures from the government in October 2022 suggest thousands of children and parents have lost track of CTFs worth on average £2,100.
If you have reached 18 but need help tracing your CTF account, you can use the government's online tracing service.
You just have to type "find a Child Trust Fund" into Google and it should be the first link that appears on the screen.
But you'll need your government gateway ID and National Insurance to hand.
If you are a parent looking to find out about your child's fund you can either access it online, or you'll need to send a letter to HMRC with the following details:
- Full name and address
- Child’s full name and address
- Child’s date of birth
- Child’s National Insurance number or Unique Reference Number if known
Dad-of-three Matthew Elsom told The Sun he was delighted after realising his daughter's lost Child Trust Fund (CTF) account was worth £549.
Lost insurance policies
How you claim a lost insurance policy depends on the type of policy that you have.
You can use policydetective.co.uk if you already know the name of the company to see if its changed its name and get the relevant contact details.
If you can't remember the company name, you could try using credit reference agency Experian's Unclaimed Assets Register online.
But bear in mind, the service costs £25 per search.
If you are looking to trace an old car insurance policy, you can check the Motor Insurer's Bureau Database.
When it comes to travel, home and other insurance policies, there's no similar service out there as there is for car insurance.
But you can check any old bank card statements for recurring payments or direct debits made to an insurer.
Lost pensions
Keeping track of all the pensions you've set up across your lifetime can be a backache.
But it's relatively easy to find an old pension, if you know the name of the provider or employer.
You can use the government's Pension Tracing Service, which helps you find contact details for the company you are trying to get in touch with.
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But it won't be able to tell you whether you have a pension or what its value is.
You can try the Pensions Advisory Service too, but unless you've got all the correct personal details to hand, you might struggle.
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