Top of main content

Matured Child Trust Funds

If you’re the registered contact for a fund that’s about to mature, here’s what happens next

Two months before the beneficiary’s 18th birthday, we’ll send a letter to the registered contact. This explains that once the beneficiary turns 18, legal ownership of the HSBC Child Trust Fund will be in their name. They’ll need to confirm what they would like to do with the investments, for example, sell them and move the proceeds to an ISA or a new or existing bank account. To do so, they may have to provide some identification and proof of address at one of our branches. 

If they don’t want to decide straight away (or they can’t visit a branch), they can keep the invested funds in the matured account until they’re ready to make a decision. Please note, the HSBC Child Trust Fund invests in stocks and shares. This means the value of the investment and any income from it can go down as well as up and may fall below the amount put in.

Identification and proof of address

Whichever option the beneficiary chooses, we require identification and proof of address for them. In most cases this involves taking the documentation into an HSBC UK branch.

Check the opening times of your local branch before you leave home.

What if we live overseas, or are unable to visit a branch? 

If the beneficiary of the fund is not able to come into an HSBC UK branch, they can still instruct us of their choices when they turn 18. They can download the printable form below and return it to us by post. It’ll need to be returned to us with certified identification and proof of address. The form includes full details of how to do this.

Please note, if the beneficiary lives outside the UK, they may not be eligible for certain accounts or products. They might also need to give different forms of identification and proof of address.

What happens to the account when the beneficiary turns 18?

  1. we’ll write to the registered contact 2 months before the beneficiary turns 18, explaining the options. 
  2. one month before the beneficiary turns 18, we’ll write directly to them, explaining what their options are and what they’ll need to do.
  3. on the beneficiary’s 18th birthday, their HSBC Child Trust Fund becomes an HSBC Matured Child Trust Fund and we’ll transfer legal ownership of the account into their name. From this point, it will be up to them what they do with their account.

Once the beneficiary turns 18, your responsibilities as the registered contact are complete, and all correspondence will be sent directly to them. You’ll no longer be able to view the account through online or mobile banking. The beneficiary will be able to view it, if they’re registered for online or mobile banking.

What are the beneficiary’s options when their HSBC Child Trust Fund matures?

  • sell the existing investments and transfer the proceeds to an HSBC UK bank account - or an account with another provider - in their own name.
  • sell the existing investments and transfer the funds to one of our HSBC ISAs or an ISA with another provider - this won’t count towards their annual ISA subscription allowance. We currently accept transfers from HSBC Matured Child Trust Funds into HSBC Loyalty Cash ISAs and the Global Investment Centre Stocks & Shares ISAs. If they choose another provider, they’ll need to approach them first to initiate the transfer and make sure they’ll accept a transfer from an HSBC Matured Child Trust Fund.
  • opt for a combination of the above.

What should I be doing as the registered contact?

Start talking to the beneficiary about the choices they have when their HSBC Child Trust Fund matures. We have some useful information around saving, investing and growing your money.

Make sure we have the correct name and address for the beneficiary. The details we have can be found on your most recent annual statement. If they’re wrong, please get in touch. You can call us on 0345 606 6241. If you have a speech or hearing impairment you can use our textphone service on 03457 660 391. Lines are open from 8am to 5pm Monday to Friday, excluding bank holidays.

Make sure any final payments are received before maturity. 

Details of final payments

Once the beneficiary turns 18, no further contributions can be accepted into the account.

  • cheques should be received at least four business days before the maturity date. 
  • we will collect Direct Debits up to and including the last business day before maturity - they will then be cancelled. If the final Direct Debit is due on a non-business day and the next business day is on, or after, the maturity date, the Direct Debit payment will not be collected.
  • please ensure any other payments have gone into the account by the last business day before maturity. 
  • you should cancel any future payment instructions that are due to be received on or after maturity.  
  • please ensure any friends or family who pay into the account arrange any final payments in line with the dates above. 

What if the beneficiary lacks mental capacity?

If you think the beneficiary may not be able to instruct us on their matured Child Trust Fund once they turn 18 because they lack mental capacity, you may need to appoint someone to act on their behalf. 

Our page on assisting someone with their money has useful information for cases like this. It explains the documents needed to appoint a deputy who can instruct us on the matured Child Trust Fund. 

Deputies (England and Wales), guardians (Scotland) or controllers (Northern Ireland) are normally appointed through the Court of Protection (England, Wales and Scotland), the Office of Care and Protection (Northern Ireland) or local country equivalent if outside the UK.  This is unlikely to be a quick process, so if you need to apply we suggest you leave plenty of time before the beneficiary turns 18 so their account can be managed or accessed without any delay. Court fees will not apply for the appointment of deputies and guardians solely for the purpose of accessing a matured Child Trust Fund. However, court fees may apply for the appointment of controllers in Northern Ireland. This may also be the case if the beneficiary has other assets.

The GOV.UK website has further guidance for England and Wales and the relevant forms to help in cases like this. You can also find out more about the application process if you live in Scotland or Northern Ireland.

It's easy to answer your query online. Visit our Help page to find out how.