Child Trust Funds

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 £3,840 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 £3,840

    You can currently invest up to £3,840 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 Personal Internet Banking service you will be able to view a valuation of your HSBC Child Trust Fund online when you log on to Personal Internet Banking.

    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.

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 Internet Banking.
  • 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 £3,840 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 Personal Internet Banking service you will be able to view a valuation of your HSBC Child Trust Fund online when you log on to Personal Internet Banking.

    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.

Before you do apply, please read our Child Trust Fund Key Features Document (PDF), Key Investor Information Document and the Terms and 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.
Transfer an existing Child Trust Fund from another provider

Download our Child Trust Fund transfer application (PDF), fill it in and send it to the address below. You should ensure that you have read the Child Trust Fund Key Features Document, Key Investor Information Document and Terms & Conditions before you complete this application form.

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.

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.
  • 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 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.

FAQs

FAQs

Contents
  1. What is a CTF?
  2. What is Lifestyling?
  3. Who can open an HSBC CTF?
  4. Who is the HSBC CTF suitable for?
  5. How can I open an HSBC CTF?
  6. Can I change my mind about the HSBC CTF?
  7. When will my CTF be opened?
  8. Who can make payments into the HSBC CTF?
  9. How much can be paid in to a CTF?
  10. What is a Key Investor Information Document ("KIID")?
  11. What happens to this money?
  12. What will I receive from you?
  13. Can I transfer my HSBC CTF to another provider?
  14. How can I find out how much the HSBC CTF is worth?
  15. How will charges and expenses affect the HSBC CTF?
  16. Will tax be paid on the HSBC CTF?
  17. What happens to the HSBC CTF on the child's 18th birthday?
What is a CTF?
  • The CTF is a government scheme which aims to provide children with a long-term savings account to access at age 18 and to help them to understand the benefits of saving and investing.
  • Eligible children born between 1 September 2002 and 2 January 2011 were able to open a Child Trust Fund with a Government voucher.
  • Although Child Trust Funds are no longer available for children born on or after 3 January 2011, parents, friends and family can still continue to top up existing Child Trust Funds.
  • There are two types of CTF: Stakeholder, and non-Stakeholder. The HSBC CTF is a Stakeholder CTF and invests in the HSBC UK Growth & Income Fund – CTF Accumulation Share Class (the ‘Fund’). A Stakeholder CTF needs to follow certain rules defined by the government, for example:
    • – A Stakeholder CTF must invest in the shares from a range of different types of companies.
    • – A CTF manager cannot ask parents (or friends and family) to pay more than £10 at a time or charge more than 1.5% of the value of the CTF each year.
    • – When the child reaches the age of 13, the investments must gradually be moved to lower risk investments such as cash or Government Bonds. This is known as Lifestyling.
  • Although Stakeholder CTFs have to meet these requirements it doesn't mean they are more suitable for you than any other type of CTF, or that they are recommended by the government or guaranteed in any way. You may not be able to invest in the type of investments you would like. If you want a cash deposit or to invest only in the shares of one company, a Stakeholder CTF would not be suitable for you.
  • A non-Stakeholder CTF may allow you to invest in any type of investment. However, it is possible that the charges may be higher than 1.5% per year or the minimum investment level may be higher than £10.
What is Lifestyling?
  • A Stakeholder CTF must invest in stocks and shares, but the value of these can go down, sometimes quite suddenly. Lifestyling can limit the impact of this by gradually moving money from the existing fund into lower-risk investments, such as cash deposits, gilts or funds that invest in these.
  • By changing the investment in this way over the last five years of the CTF, it helps to ensure that the value of the CTF is not significantly reduced by a sudden fall in share values towards the child's 18th birthday.
  • We will send a reminder about Lifestyling and further details, including all relevant charges for any funds used, near to the child's 12th birthday. If you do not want Lifestyling to apply to your child's CTF, you can write and tell us at any time after that * .
Who can open an HSBC CTF?
  • Anyone aged 16 years or over who has 'parental responsibility' for an eligible child can open an HSBC CTF by transferring an existing CTF to HSBC from another provider. This will normally be one of the child's parents but it could be a step parent or a guardian, for example. The person who opens the HSBC CTF is known as a 'Registered Contact'.
  • We can only accept instructions about the HSBC CTF from the Registered Contact. If the Registered Contact needs to be changed, please download and print an Application for a Change of Registered Contact Form from the 'How to apply' section.
  • From 1 July 2012, we are required to ensure that you have received the latest version of the Key Investor Information Document (KIID) for the HSBC UK Growth & Income Fund - CTF Accumulation share class, in which the HSBC CTF invests, before accepting your application. On your application form you will be asked to declare that you have received, and read, the latest version of the KIID. Your application will only be accepted if you have signed the declaration.
  • We will categorise you, the Registered Contact, as a retail customer and treat you as such in all our dealings with you in respect of this investment. This means you will get the highest level of protection available within the rules and guidance set out by the Financial Conduct Authority.
  • When the child is 16 you will no longer be the Registered Contact. At that time the child will need to apply to become the Registered Contact.
Who is the HSBC CTF suitable for?
  • A typical investor in our product is a Registered Contact who is looking to provide a tax-free lump sum for their child by investing in a wide-ranging portfolio of shares.
  • 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.
How can I open an HSBC CTF?
  • You can open an HSBC CTF by transferring an existing CTF to us.
  • If you wish to transfer your existing CTF from another provider to HSBC, you should download our Child Trust Fund transfer application (PDF) and send it to us at the following address.

    HSBC Trust Company (UK) Limited,
    PO Box 6189,
    Coventry,
    CV3 9HS
  • When CTFs are transferred, the investment can be out of the market for up to 30 days. This means that there will be no potential for capital growth during that period.
  • From 1 July 2012, we are required to ensure that you have received the latest version of the Key Investor Information Document (KIID) for the HSBC UK Growth & Income Fund - CTF Accumulation share class, in which the HSBC CTF invests, before accepting your application. On your application form you will be asked to declare that you have received, and read, the latest version of the KIID. Your application will only be accepted if you have signed the declaration.
Can I change my mind about the HSBC CTF?
  • Yes, once we accept your application you have 14 days, from the date we accept your application, in which to cancel. You should do this by writing to us. We will not ask your existing provider to transfer your CTF to us until the cancellation period has expired.
  • If you cancel your HSBC CTF within the 14-day cancellation period we will return any money paid by yourself or friends and family as a cheque payable to the child. If you choose not to exercise your right to cancel, you will be subject to all investment risks and charges as detailed in this document.
  • If you do not cancel within the 14-day cancellation period but change your mind later, you can only terminate your HSBC CTF by transferring it to another CTF provider. There will be no charge for this.
When will my CTF be opened?
  • If you haven't cancelled after 14 days from the date we accept your application, we will contact your existing CTF provider to request the transfer of your CTF to HSBC. The transfer of your existing CTF to HSBC can take up to 30 days which means that there will be no potential capital growth during that period.
Who can make payments into the HSBC CTF?
  • Anyone can add money to the HSBC CTF at any time by sending it to us or by going into their local branch. We accept payments by cheque (payable to the child and quote the HSBC CTF account details on the back of the cheque), standing order, direct credit and direct debit. You can obtain a Direct Debit Form from us by visiting our website or by calling us.
  • If other people want to make payments into your child's HSBC CTF you will need to give them the account details that we will send to you once we have opened the HSBC CTF.
  • We do not accept cash payments.
  • Before you invest in the HSBC CTF you should make sure you read the Key Investor Information Document (KIID).
What is a Key Investor Information Document ("KIID")?
  • The KIID is a two page pre-sale document produced for each fund containing clear descriptions of key fund information. The information in the KIID is prescribed by the Financial Services Authority rules and is intended to assist customers in making an informed investment decision.
  • By 1 July 2012, fund providers must produce a KIID for their funds and make them available to customers before they invest. This requirement will apply to the vast majority of funds for sale across Europe.
  • You should make sure you have received and read the latest version of the KIID before making a final decision to invest and the KIID should be read in conjunction with the HSBC CTF Key Features Document and Terms and Conditions.
  • You can obtain a copy of the most recent version of the KIID at any time by calling us *. The most recent version of the KIID will always be available on our website.
  • As the registered contact, you should ensure that you read the latest KIID before investing in the HSBC CTF. The KIID will be updated on an annual basis no later than 35 days after 31 December. If you are making, or are aware that a third party is making, an additional investment into your HSBC CTF and you have not received the most recent version of the KIID, you should obtain and read a copy of the most recent version of the KIID so that you can make an informed investment decision.
  • The Key Investor Information Document ("KIID") is provided for your information by HSBC Global Asset Management (UK) Limited. HSBC Global Asset Management (UK) Limited is responsible for the reliability and accuracy of the KIID.
How much can be paid in to a CTF?
  • The most that can be added to a CTF in a birthday year is £3,840 (excluding any government payments). A birthday year starts on the child's birthday and ends on the day before his or her next birthday each year. The first birthday year starts on the day the account is opened and ends on the day before the child's next birthday.
What happens to this money?
  • The HSBC CTF makes the most of all the money given to the child by using three accounts - the Cash Account, the Investment Account and the Overflow Account.
  • The Cash Account – all the CTF payments up to £3,840 each birthday year, from whatever source, are paid into this account.
  • The Investment Account – once the payments have cleared in the Cash Account, the cash will be moved into the Investment Account to buy shares in the fund – this will normally take place within two business days after the payments have cleared.
  • The Overflow Account – any payments we receive over the annual limit of £3,840 in each birthday year will automatically be paid into this account and held as cash. On the child's next birthday up to £3,840 from the Overflow Account is paid into the Cash Account and treated like any other payment.
  • Interest on money in the Cash Account and the Overflow Account is accrued daily and paid annually, normally the day before the child's next birthday, into the appropriate account. Interest is paid at a rate of 1% below the Bank of England base rate. If the Bank of England base rate is 1% or lower, interest will not be accrued.
What will I receive from you?
  • Once we have accepted your application we will write to you confirming when we will open your HSBC CTF.
  • We will write to you again once the first investments have been purchased for your child's HSBC CTF. No share certificates will be issued but we will provide you with annual statements, approximately one month before the child's birthday, showing any additional payments invested over the last year and the current value of the HSBC CTF.
Can I transfer my HSBC CTF to another provider?
  • Yes. CTFs can be transferred from one provider to another.
  • If you wish to transfer the HSBC CTF to another CTF provider, you should obtain a transfer application form from them. Once we receive instructions from your new provider, we will sell any shares in the Investment Account and transfer the proceeds, along with any money in the Cash Account and the Overflow Account, to the new provider.
  • You can only transfer any money in the Overflow Account if the new provider specifically agrees to this, otherwise we will send you a cheque made payable to the child for the amount of money held in the Overflow Account.
  • When CTFs are transferred, the investment can be out of the market for up to 30 days. This means that there will be no potential for capital growth during that period.
How can I find out how much the HSBC CTF is worth?
  • We will send you a statement approximately 30 days before the child's birthday each year which will show the value of the HSBC CTF.
  • Share prices can be found on www.assetmanagement.hsbc.com/uk by selecting 'Individual Investors' then selecting 'Funds and Prices', 'OEIC Funds' and scrolling down to 'HSBC UK Growth & Income Fund – CTF Share Class'. You can calculate the value of your HSBC CTF by multiplying the number of shares held in the HSBC CTF by the fund share price.
  • You can also call us for an up-to-date valuation of the HSBC CTF .
How will charges and expenses affect the HSBC CTF?
  • A charge will be made within the fund. This is called an Annual Management Charge (AMC) and is 1.5% per year.
  • As the charge is taken from the fund the effect of this is seen in the share price. There are no other charges.
  • The following tables are based on an initial payment from the government of £250 plus monthly payments of £20; and an initial payment from the government of £50 plus monthly payments of £20. This assumes that the investment will grow by 7% each year. The tables cover the first thirteen years of the CTF, until Lifestyling starts.

    £250 initial payment from the government plus monthly payments of £20 – for children born on or before 1st August 2010
    At end of year Investment to date Effect of deductions to date What you might get back at 7%
      £ £ £
    1 490 6 510
    2 730 16 785
    3 970 32 1,070
    4 1,210 51 1,380
    5 1,450 76 1,700
    10 2,650 309 3,620
    13 3,370 569 5,040

    The last line in the table shows that over 13 years the effect of the total charges and expenses could amount to £569. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 5.6% a year.

    £50 initial payment from the government plus monthly payments of £20 – for children born on or after 2nd August 2010
    At end of year Investment to date Effect of deductions to date What you might get back at 7%
      £ £ £
    1 290 2 299
    2 530 9 562
    3 770 21 840
    4 1,010 36 1,130
    5 1,250 56 1,440
    10 2,450 254 3,280
    13 3,170 484 4,650
    The last line in the table shows that over 13 years the effect of the total charges and expenses could amount to £484. Putting it another way, this would have the same effect as bringing investment growth from 7% a year down to 5.6% a year.
  • The calculations shown in the tables do not include any dealing costs.
  • These figures are only examples and are not guaranteed. They are not minimum or maximum amounts.
  • What the child will get back depends on how the investment grows and on the tax treatment of the fund.
  • The child could get back more or less than the amounts shown, and in some instances it may be less than the sum originally invested.
  • Firms generally use the same rates of growth for projections, but their charges vary.
  • Please note that inflation will reduce what could be bought in the future with the amounts shown.
Will tax be paid on the HSBC CTF?
  • During the course of the investment, no UK income tax or Capital Gains Tax in respect of the HSBC CTF will be paid by you or the child.
  • At maturity, the child will not pay any UK Income Tax or Capital Gains Tax in respect of the HSBC CTF. Any cash in the Overflow Account will be treated in accordance with the child's tax status at that time.

    Interest paid on the money in the Overflow Account will be paid after the deduction of basic rate tax unless we hold a fully completed Form R85 for the child. A Form R85 should be completed so that interest can be paid without tax being taken off. So as long as the child doesn't become a taxpayer, a Form R85 will apply until the 5 April following the child's 16th birthday. The relevant form will be sent to you when we switch money to the Overflow Account. If the child is a higher-rate taxpayer, any additional income tax due over and above the amount deducted at source will need to be paid to HMRC via the child's own tax return.

What happens to the HSBC CTF on the child's 18th birthday?
  • On the child's 18th birthday the HSBC CTF will mature and the child can have the proceeds paid out to them or transferred to a bank account of their choice. Alternatively, the proceeds can be rolled over into an Individual Savings Account (ISA) in their name.
  • For further details on maturity, please see 'Maturity of the Child Trust Fund' in the HSBC CTF Terms and Conditions.

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.