If you’re turning 18 in the next few weeks, you’ve probably received a letter explaining that your Child Trust Fund is due to mature. On your 18th birthday, you’ll become the legal owner of the account, which means you’ll need to think about what you want to do with your money. In the coming months, you might be starting work, heading off to uni or mapping out an adventure. Maybe you’ve got plans for your money now, or perhaps you’re looking to the future. Either way, there are a number of different paths you can set your money on and we’re here to help you navigate.
Options for your money
Once you turn 18, no more payments can be made into your Child Trust Fund, but you can instruct us to sell the invested funds and transfer the proceeds into another account. This means you can continue saving, or get access to your money now, depending on your short and long-term plans.
Here’s a round-up of the different accounts, so you can work out what’s best for you.
Most of these options will require you to visit us in person to supply identification and proof of address. Check the opening times of your local branch before you leave home.
HSBC Loyalty Cash ISA
If you want to carry on building your savings, a cash ISA is a tax-efficient option.
How do I do this? You can instruct us to transfer your proceeds to a new or existing HSBC Loyalty Cash ISA.
HSBC stocks & shares ISA
If you’re considering investing a little money for the future, a stocks & shares ISA is a tax-efficient way to start.
How do I do this? You can instruct us to transfer your proceeds to an HSBC stocks & shares ISA. This gives you the option of putting your money into a diverse range of investments, which may produce a better return than a cash ISA. However, they also come with greater risk and you may not get back what you invest.
ISA with another provider
If you want to carry on building your savings, an ISA is a tax-efficient option.
How do I do this? You can ask us to move the proceeds into a non-HSBC ISA. You’ll need to ask the other provider to initiate the transfer. They’ll ask you for the account details of your HSBC Child Trust Fund. You may still need to go into an HSBC branch to supply a signature and provide identification and proof of address.
An HSBC UK bank account
If you’re likely to spend your money in the near future, you may want to transfer the proceeds into a current account. We have accounts that are ideal for basic banking and ones that give you added benefits, as well as one designed especially for students.
If you don’t have an account with us, you can apply for a new HSBC UK bank account online. Once your account is open, you can provide your payment instruction to us.
How do I do this? If you’re registered for telephone banking, you can call us on 0345 606 6241 - how to register for telephone banking. Or you can come into a branch.
HSBC Student Account
If you're planning on going to university, our Student Bank Account makes it easy to manage your finances and make the most of your newfound independence.
How do I do this? Visit our student page to find out how to apply and get £100 cashback. In order to qualify you must make five eligible transaction within 30 days and be on a first year qualifying course. (New customers only. T&Cs and other eligibility criteria apply.)
A non-HSBC bank account
If you’re likely to spend your money in the near future, you may want to transfer the proceeds into a current account.
How do I do this? If you want us to transfer the proceeds into a bank account with a different provider, we’ll need you to do it in person at an HSBC branch.
You’ll need to bring identification and proof of address. You’ll also need a statement from the bank account you want to transfer the money to, dated within the last four months.
A combination of options
You could also divide your money between a number of different accounts.
How do I do this? If you think transferring the proceeds to more than one type of account might be right for you, we’re happy to talk this over.
You can do this:
- by phone on 0345 606 6241
- in person by coming into a branch
If you need further information or advice
You should think carefully about your options in order to make the decision that’s right for you.
HSBC has three different types of investment advice depending on how much you have to invest. Be mindful that investments can go down in value as well as up.
If you’ve still got questions, we recommend you consider taking independent financial advice. Your money will remain in your HSBC Matured CTF account until we carry out your instructions.
