Child Trust Fund

Child Trust Funds

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Overview

Overview

A tax efficient way to save for your child's future

Our Child Trust Fund mainly invests in shares from a range of UK companies. The HSBC Child Trust Fund invests in a fund, which invests across a wide range of different investments with the aim of reducing risk. You can currently invest up to £4,128 each birthday year and when your child reaches 18, they can access the money without paying any tax.

The HSBC Child Trust Fund is only available if you wish to transfer your existing Child Trust Fund to us.

  • Tax efficient

    Child Trust Funds are a tax efficient way to save for your child’s future.

  • Invest up to £4,128

    You can currently invest up to £4,128 each birthday year, either as a lump sum or with regular payments – the minimum investment is just £10. You can transfer an existing Child Trust Fund from another provider.

  • Friends and family

    Your relatives and friends can also pay money into the Child Trust Fund – the minimum investment is just £10.

  • Easy to set up

    An HSBC Child Trust Fund is simple to set up and manage. You can even check the value of the Child Trust Fund when you log on to Internet Banking.

  • Investment risk

    All investments carry some risk. The value of investments can fall as well as rise and you may not get back the amount you invested.

  • Tax benefits

    The value of any tax benefits this product can offer will depend on your individual circumstances and tax rules may change in future.

You might consider this for:

Downloads

The Child Trust Fund key features document in a handy (and printable) PDF.

You should also download and read the following:

To read our PDF files you'll need Acrobat Reader 4.0 or above. Visit Adobe UK. If you're using screen reading technology that cannot read PDFs, a converter is available at Access Adobe.

Our top 5 FAQs

  1. How do I transfer my existing Child Trust Fund to HSBC?
    How do I transfer my existing Child Trust Fund to HSBC?

    All you need to do is click on the 'How to apply' button at the top of this page and print a Child Trust Fund Transfer application. Ensure you have completed all the details as well as the existing Child Trust Fund Provider information and we will arrange for your Child Trust Fund to be transferred to us.

  2. What is a birthday year?
    What is a birthday year?

    A birthday year runs from the day of your child's birthday and ends on the day before his or her next birthday each year. When you first open a Child Trust Fund the first birthday year starts on the day the account is opened and ends on the day before your child's next birthday.

    The value of most investments, and any income they generate, can go down as well as up, meaning you may not get back the full amount you invested. This may in part be due to exchange rate fluctuations where overseas investments are held.

    Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

    Some have a fixed-term or may not be accessible until you reach a specified age as set out in the relevant product terms and conditions. For products with a fixed-term you may get back significantly less than originally invested if you make an early withdrawal.

    The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

  3. What happens if I pay in too much?
    What happens if I pay in too much?

    If you pay in any money over the Maximum Subscription Limit this will be held as cash in an Overflow Account. On your child's next birthday this money, up to the Maximum Subscription Limit, will be invested in the HSBC Child Trust Fund. Interest on money held in the Overflow Account is paid at a rate of 1% below the Bank of England base rate. Money in this account cannot be withdrawn.

    The value of most investments, and any income they generate, can go down as well as up, meaning you may not get back the full amount you invested. This may in part be due to exchange rate fluctuations where overseas investments are held.

    Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

    Some have a fixed-term or may not be accessible until you reach a specified age as set out in the relevant product terms and conditions. For products with a fixed-term you may get back significantly less than originally invested if you make an early withdrawal.

    The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

  4. Can I view my Child Trust Fund online?
    Can I view my Child Trust Fund online?

    If you are registered on our Online Banking service you will be able to view a valuation of your HSBC Child Trust Fund online when you log on to the Online Banking service.

    If you have an HSBC CTF with us and you want to view the value when you log into the Online Banking service, you will need to request this facility by either sending us a secure e-message through the Online Banking service or by calling us on 0845 606 6241 (textphone 0845 766 0391)*.

    Please note that we can only provide a valuation of the HSBC Child Trust Fund online – you will not be able to view the transaction history or provide any instructions in relation to the HSBC Child Trust Fund. We will send you a statement each year before your child's birthday which will detail the transaction history. Alternatively you can call us on 0845 606 6241(textphone 0845 766 0391)* for an up to date valuation and information on the transaction history.

    *Lines are open 8am to 6pm Monday to Friday (excluding public holidays). To help us continually improve our services and in the interests of security, we may monitor and/or record your communications with us.

    The value of most investments, and any income they generate, can go down as well as up, meaning you may not get back the full amount you invested. This may in part be due to exchange rate fluctuations where overseas investments are held.

    Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

    Some have a fixed-term or may not be accessible until you reach a specified age as set out in the relevant product terms and conditions. For products with a fixed-term you may get back significantly less than originally invested if you make an early withdrawal.

    The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

  5. What forms of payment do you accept into the HSBC Child Trust Fund?
    What forms of payment do you accept into the HSBC Child Trust Fund?

    We do not accept cash payments into the HSBC Child Trust Fund.

    We can accept the following types of payment into the HSBC Child Trust Fund:

    • Cheque
    • Direct debit
    • Direct credit
    • Standing order

    The value of most investments, and any income they generate, can go down as well as up, meaning you may not get back the full amount you invested. This may in part be due to exchange rate fluctuations where overseas investments are held.

    Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

    Some have a fixed-term or may not be accessible until you reach a specified age as set out in the relevant product terms and conditions. For products with a fixed-term you may get back significantly less than originally invested if you make an early withdrawal.

    The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

Need to speak to us?

Give our friendly team a call on:

0345 606 6241*

Prefer to talk face-to-face?

Pop into your nearest branch for a chat.

The value of investments (and any income received from them) can fall as well as rise and you may not get back the amount invested. For some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.

Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

If you have any questions or need to contact us, you can phone or write to us at:

HSBC Trust Company (UK) Limited,
PO Box 6189,
Coventry,
CV3 9HS

Call us on 0345 606 6241 (textphone 0345 766 0391).

*Lines are open 8am to 6pm Monday to Friday (excluding public holidays).

To help us continually improve our services and in the interests of security, we may monitor and/or record your communications with us.

More details

More details

Key product information

What you need to know
  • The Child Trust Fund is a government scheme that is for children born on or between 1 September 2002 and 2 January 2011
  • The Child Trust Fund gives you a tax efficient way to invest for your child’s future – through a long-term investment that your child can access when they’re 18
  • The HSBC Child Trust Fund invests in stocks and shares, the value of which can fall as well as rise, so you could get back less than you put in
  • If you choose the HSBC Child Trust Fund, your money will be invested in the HSBC UK Growth & Income Fund – CTF Accumulation Share Class
  • The HSBC Child Trust Fund is a stakeholder fund – so it has to follow rules set by the government, including a low minimum investment and a maximum limit on charges
  • An HSBC Child Trust Fund is simple to set up and manage. We’ll send you an update on the value of your child's HSBC Child Trust Fund each year. You can also check the value of the Child Trust Fund when you log on to the Online Banking service.
  • A Child Trust Fund account belongs to your child and any money you pay into the account is a gift to them
  • This product is offered without advice and, as such, we are not required to assess the suitability of this product for you. This means that the protection offered by the Financial Conduct Authority's rules on assessing suitability will not apply to this transaction.
  • The value of investments (and any income received from them) can fall as well as rise and you may not get back what you invested. For some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.
  • Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.
  • The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.
How it works
  • An HSBC Child Trust Fund can be opened by anyone aged 16 years or over who has 'parental responsibility' for an eligible child and wishes to transfer an existing Child Trust Fund from another provider to us.
  • You, friends and family can pay money into the account whenever you want up to a maximum of £4,128 each birthday year.
  • When your child is 18, they can withdraw the money from their Child Trust Fund. Under current tax law, any returns from a Child Trust Fund are free from income and Capital Gains Tax.

Our top 5 FAQs

  1. How do I transfer my existing Child Trust Fund to HSBC?
    How do I transfer my existing Child Trust Fund to HSBC?

    All you need to do is click on the 'How to apply' button at the top of this page and print Child Trust Fund Transfer application. Ensure you have completed all the details as well as the existing Child Trust Fund Provider information and we will arrange for your Child Trust Fund to be transferred to us.

  2. What is a birthday year?
    What is a birthday year?

    A birthday year runs from the day of your child's birthday and ends on the day before his or her next birthday each year. When you first open a Child Trust Fund the first birthday year starts on the day the account is opened and ends on the day before your child's next birthday.

    The value of most investments, and any income they generate, can go down as well as up, meaning you may not get back the full amount you invested. This may in part be due to exchange rate fluctuations where overseas investments are held.

    Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

    Some have a fixed-term or may not be accessible until you reach a specified age as set out in the relevant product terms and conditions. For products with a fixed-term you may get back significantly less than originally invested if you make an early withdrawal.

    The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

  3. What happens if I pay in too much?
    What happens if I pay in too much?

    If you pay in any money over the Maximum Subscription Limit this will be held as cash in an Overflow Account. On your child's next birthday this money, up to the Maximum Subscription Limit, will be invested in the HSBC Child Trust Fund. Interest on money held in the Overflow Account is paid at a rate of 1% below the Bank of England base rate. Money in this account cannot be withdrawn.

    The value of most investments, and any income they generate, can go down as well as up, meaning you may not get back the full amount you invested. This may in part be due to exchange rate fluctuations where overseas investments are held.

    Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

    Some have a fixed-term or may not be accessible until you reach a specified age as set out in the relevant product terms and conditions. For products with a fixed-term you may get back significantly less than originally invested if you make an early withdrawal.

    The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

  4. Can I view my Child Trust Fund online?
    Can I view my Child Trust Fund online?

    If you are registered on our Online Banking service you will be able to view a valuation of your HSBC Child Trust Fund online when you log on to the Online Banking service.

    If you have an HSBC CTF with us and you want to view the value when you log into Personal Internet Banking, you will need to request this facility by either sending us a secure e-message through Personal Internet Banking or by calling us on 0845 606 6241 (textphone 0845 766 0391)*.

    Please note that we can only provide a valuation of the HSBC Child Trust Fund online – you will not be able to view the transaction history or provide any instructions in relation to the HSBC Child Trust Fund. We will send you a statement each year before your child's birthday which will detail the transaction history. Alternatively you can call us on 0845 606 6241(textphone 0845 766 0391)* for an up to date valuation and information on the transaction history.

    *Lines are open 8am to 6pm Monday to Friday (excluding public holidays). To help us continually improve our services and in the interests of security, we may monitor and/or record your communications with us.

    The value of most investments, and any income they generate, can go down as well as up, meaning you may not get back the full amount you invested. This may in part be due to exchange rate fluctuations where overseas investments are held.

    Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

    Some have a fixed-term or may not be accessible until you reach a specified age as set out in the relevant product terms and conditions. For products with a fixed-term you may get back significantly less than originally invested if you make an early withdrawal.

    The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

  5. What forms of payment do you accept into the HSBC Child Trust Fund?
    What forms of payment do you accept into the HSBC Child Trust Fund?

    We do not accept cash payments into the HSBC Child Trust Fund.

    We can accept the following types of payment into the HSBC Child Trust Fund:

    • Cheque
    • Direct Debit
    • Direct Credit
    • Standing Order

    The value of most investments, and any income they generate, can go down as well as up, meaning you may not get back the full amount you invested. This may in part be due to exchange rate fluctuations where overseas investments are held.

    Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

    Some have a fixed-term or may not be accessible until you reach a specified age as set out in the relevant product terms and conditions. For products with a fixed-term you may get back significantly less than originally invested if you make an early withdrawal.

    The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

Need to speak to us?

Give our friendly team a call on:

0845 606 6241*

Prefer to talk face-to-face?

Pop into your nearest branch for a chat.

The value of investments (and any income received from them) can fall as well as rise and you may not get back the amount invested. For some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.

Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

If you have any questions or need to contact us, you can phone or write to us at:

HSBC Trust Company (UK) Limited,
PO Box 6189,
Coventry,
CV3 9HS

Call us on 0845 606 6241 (textphone 0845 766 0391).

*Lines are open 8am to 6pm Monday to Friday (excluding public holidays).

To help us continually improve our services and in the interests of security, we may monitor and/or record your communications with us.

How to apply

How to apply

How to apply?

You can open an HSBC CTF by transferring an existing CTF to us. Download our Child Trust Fund transfer application (PDF).

Before you do apply, please read our Child Trust Fund Key Features Document (PDF), Key Investor Information Document, the UK FSCS Information Sheet and Exclusions List (PDF) and Child Trust Fund Terms & Conditions (PDF).

We recommend you print and save these documents.

You should also look at the eligibility requirements and things you should know.

If you're in any doubt as to the suitability of this service for you, please seek independent financial advice.

To read our PDF files you'll need Acrobat Reader 4.0 or above. Visit Adobe UK. If you’re using screen reading technology that cannot read PDFs, a converter is available at Access Adobe.

Things you should know before you apply
  • This product is offered without advice and, as such, we are not required to assess the suitability of this product for you. This means that the protection offered by the Financial Conduct Authority’s rules on assessing suitability will not apply to this transaction.
  • A Child Trust Fund account belongs to your child and any money you pay into the account is a gift to them.
  • The value of investments (and any income received from them) can fall as well as rise and you may not get back what you invested. For some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.
  • The value of the tax benefits described in the key features document will depend on individual circumstances. Tax rules could change.
  • Past performance is not a guide to future performance.
Setting up a Direct Debit

If you want to make regular contributions to your Child Trust Fund savings account, please complete our Child Trust Fund Direct Debit form (PDF) and send it with your application to the address below.

Friends and family can also make regular contributions by completing this form and sending it to us. You will need to give them the account details that we will send to you once we have opened the HSBC Child Trust Fund.

Please see the Child Trust Fund Key Features Document (PDF) for further details on payment methods. If you are the Registered Contact and you wish to set up or increase your Direct Debit payments, please ensure you read the Key Investor Information Document before completing this form.

Changing the registered contact

If you need to change the registered contact for your Child Trust Fund, please download our Application for a change of Registered Contact (PDF) and send it to the address below. Please also read the UK FSCS Information Sheet and Exclusions List (PDF).

You may change the registered contact for a Child Trust Fund in the following circumstances:

  • The existing registered contact no longer wishes to be the registered contact for the Child Trust Fund.
  • The Child is 16 years of age or over and wishes to be Registered Contact.
  • Incapacity or death of the registered contact.
  • Adoption of the child.
  • Expiration of a previous court order naming the existing registered contact as a responsible person for the child.
  • New court order confirming that the existing registered contact should cease to be so.
  • Lost contact with the registered contact.

HSBC Trust Company (UK) Limited,
PO Box 6189,
Coventry,
CV3 9HS

Eligibility requirements

To be eligible:

  • The child must be born between 1st September 2002 and 2nd January 2011
  • An HSBC Child Trust Fund can be opened by anyone aged 16 years or over who has 'parental responsibility' for an eligible child and wants to transfer an existing Child Trust Fund with another provider to us.

You should also read Things you should know.

The value of investments (and any income received from them) can fall as well as rise and you may not get back the amount invested. For some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.

Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years.

The value of any tax benefits described depends on your individual circumstances. Tax rules may change in the future.

If you have any questions or need to contact us, you can phone or write to us at:

HSBC Trust Company (UK) Limited,
PO Box 6189,
Coventry,
CV3 9HS

Call us on 0345 606 6241 (textphone 0345 766 0391).

*Lines are open 8am to 6pm Monday to Friday (excluding public holidays).

To help us continually improve our services and in the interests of security, we may monitor and/or record your communications with us.