Get your hands on some extra cash

Millions of pounds are knocking about in forgotten accounts and some of it might be yours! Here's how to reclaim it.

New research from Clydesdale and Yorkshire Banks has revealed that us Brits are a little forgetful when it comes to keeping track of our savings. In fact, according to the results of the survey, an estimated 10 million Brits have forgotten about savings accounts, only to stumble across an average of £600 in old accounts at a later date!

Nearly a quarter of people have discovered cash in old ISAs, children's savings accounts, bonds and dusty money boxes worth a staggering £6.1bn in total. Those living in Chelmsford have discovered the most in lost savings, with £1,622.86 each in long-lost accounts.

So there's a good chance that you too could have an account you've forgotten about.

Dormant accounts

A dormant account -- or unused account -- refers to an account that has been inactive for an extended period and the bank running the account has been unable to contact the account holder. To prevent fraud or ID theft, once an account has been declared dormant it can no longer be operated.

Under the Dormant Bank and Building Society Accounts Act, any money which has been left dormant in accounts for more than 15 years will be moved into a central fund. The money will then be used to finance a range of public/social programmes.

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Although it may seem strange that you could have an account you’ve forgotten about, it is actually fairly easy to do. One of the most common reasons for losing track of an account is failing to update your bank or building society with your new contact details when you move house. Some people also forget about childhood savings accounts they have. And with banks and building societies regularly merging, it can make tracking down your savings extremely tricky!

But if you do think you might have some cash trapped in a neglected account somewhere, don’t assume that it’s lost forever. It’s not -- in fact, there’s plenty you can do to claim back what is rightfully yours! Even if the money has been moved into the central fund I mentioned above, it’s still your property and you can still reclaim it at any time.

Get your money back!

Yesterday (30 January) marked the third birthday of the lost account tracing website, mylostaccount.org.uk. The site was designed to make it easier for people to search for lost accounts.

The website combines the tracing services of the British Banker’s Association, the Building Societies’ Association (BSA) and National Savings and Investments (NS&I) -- covering almost all bank, building society and NS&I accounts in the UK.

Making a claim on the website is free, and all you need to do is fill out an online form providing as much detail as possible about the account -- including any previous names and addresses of the account holder. It can take up to three months to carry out a search, but if your money is found, you’ll immediately be contacted and your account will be reactivated.

Other unclaimed assets

Of course your lost funds might not only be tied up in savings and current accounts. Many people have forgotten about money in pensions, shares and life policies. And that’s where the Unclaimed Assets Register (UAR) comes in. The UAR is a database of unclaimed life policies, pensions, unit trust holdings, and share dividends drawn from many companies.

Even if you can’t remember the name of the company concerned, or your paperwork has miraculously disappeared down some black hole, the UAR may still be able to help. The only snag is that you will have to pay a fixed fee of £25 for every search carried out.

Alternatively, The Pension Tracing Scheme is a free service run by the Department for Work and Pensions which can help to trace an old pension scheme if the details are unclear or have been lost. It has access to information on over 200,000 pension schemes.

So if you do think you might have some money lurking in a dormant account somewhere, don’t delay -- put in a claim today! After all, at a time when all of us are tightening the purse-strings, who wouldn’t want to get their hands on some extra cash?

Useful contacts

Mylostaccount – email info@mylostaccount.org.uk or visit mylostaccount.org.uk

British Bankers’ Association – call 020 7216 8800 or visit www.bba.org.uk

Building Societies Organisation – call 020 7520 5900 or visit www.bsa.org.uk

National Savings and Investments – call 0500 007 007 or visit www.nsandi.com

Pension Tracing Service – call 0845 6002 537 or visit http://www.thepensionservice.gov.uk/

The Unclaimed Assets Register – call 0870 241 1713 or visit http://www.uar.co.uk/

This is a classic article that has been updated for 2011.

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