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Child Trust Fund

Guide for customers with an existing Child Trust Fund account

About Child Trust Funds

A Child Trust Fund is a government scheme that provides a way to invest for children born on or between 1 September 2002 and 2 January 2011. The scheme is now closed to new applicants.

If you already have a Child Trust Fund with HSBC, you can continue to add up to £4,260 a year until your child turns 18. And if you hold a Child Trust Fund with another provider, you may wish to transfer it to HSBC.

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Paying money into your HSBC Child Trust Fund

If you have a Child Trust Fund with HSBC, you can invest up to £4,260 each birthday year – either as a lump sum or in regular payments. The minimum investment is just £10. 

Your relatives and friends can also pay money into the Child Trust Fund if they want to – you just need to give them your account details. For more on payment methods, please read the ‘Child Trust Fund key features’ document, shown below.

To set up or increase Direct Debit payments to your account, please print the ‘Child Trust Fund Direct Debit’ form shown below – or call us and we’ll send you a copy. Before completing the form, make sure you read the ‘Key investor information’ document so you understand the nature of the investment and the risk involved.

Remember that a Child Trust Fund is an investment and that all investments carry some risk. The value of investments can fall as well as rise and you may not get back the amount you invest.

What happens when your child turns 18?

When your child turns 18, they can withdraw the money from their Child Trust Fund. Under current tax law, any returns from a Child Trust Fund will be free from income and Capital Gains Tax – although this could change in the future.  The tax benefits described will depend on individual circumstances.

They can have the money transferred either to a bank account of their choice or to an ISA that can be opened in their name. We will write to you before their 18th birthday explaining these options in more detail.

Changing the registered contact

To change the registered contact, please download, print and complete our ‘Change of registered contact’ form, shown below. Or call us and we’ll send you a copy.

You can change the registered contact for your HSBC Child Trust Fund if any of the following applies:

  • The existing registered contact no longer wants to be the registered contact
  • The child is 16 years of age or over and wants to become the registered contact
  • The registered contact becomes incapacitated or dies
  • The child is adopted
  • A court order that names the existing registered contact as responsible for the child expires
  • New court order confirms that the existing registered contact should no longer be so
  • Contact with the registered contact is lost

Transferring a Child Trust Fund to HSBC

If you have an existing Child Trust Fund held with another provider, you could transfer it to HSBC. That way, you can check the value of the fund whenever you log on to online banking.

The HSBC Child Trust Fund mainly invests in shares from a range of UK companies. It invests in a fund, which invests across a wide range of different investments with the aim of reducing risk. 

To transfer a Child Trust Fund to us, please download the ‘Transfer your Child Trust Fund to HSBC’ form. Before completing the form, make sure you read the following important information so you understand the nature of the investment and the risk involved.

The HSBC Child Trust Fund is offered without advice. This means we aren’t required to assess the suitability of this product for you so you need to be confident about making your own investment decisions.

Bear in mind that the value of investments can fall as well as rise so you may get back less than you invest.

What else do you need to know?

A Child Trust Fund account belongs to your child. Any money you pay into the account is a gift to them that they can only access when they turn 18.

As of April 2015, you can transfer your Child Trust Fund account into a Junior ISA if you want to. Currently, we don’t offer Junior ISAs but you can find out more about them at moneyadviceservice.org.uk.

Do you need financial advice?

We want to make sure our products and services are right for your circumstances. If you’re not sure whether an investment is suitable for you, we recommend you consider taking financial advice.

To find out about getting investment advice from HSBC, read our advice options  page. 

To find out more about the wider industry, including how to seek independent financial advice, you can visit moneyadviceservice.org.uk

Have a question?

If you have any questions about your Child Trust Fund account, please call 0345 606 6241 or textphone 0345 766 0391.

Lines are open 8am to 6pm Monday to Friday, excluding public holidays. All calls are recorded.

 

HSBC Child Trust Fund is offered by HSBC Trust Company (UK) Limited. HSBC Trust Company (UK) Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, and is entered on the Financial Services Register as number 119297.

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