Mothercare reveals plans to sell baby bonds in stores

Mothercare is to sell Child Trust Funds (CTFs) – or so-called “baby bonds” – in its stores after joining forces with The Children’s Mutual, a specialist provider of children’s savings.

The retailer will also promote the forthcoming savings product on its website, and will be allowing parents to register for information and updates both in its stores and online. It becomes the first retailer to announce its plans for CTFs, but other retailers are set to follow.

Barclays Bank last month teamed up with rival specialist provider Family Investments to sell CTFs through its high street branches. The Inland Revenue also released the CTF logo, created by advertising agency LIDA, which will be used in all marketing communications for the product (MW October 21).

The Children’s Mutual rebranded from Tunbridge Wells Equitable Friendly Society in 2002 in anticipation of the CTFs, while Family Assurance rebranded as Family Investments as part of its marketing drive to support the new products (MW October 14).

The Government is writing to households to explain the new child savings scheme to parents and will send out a booklet in January, when the scheme goes live, listing the brands which provide CTFs. It will be accompanied by a voucher for parents to invest on their children’s behalf with a brand of their choice. Children born since September 2002 will receive &£250. Children from lower income households will receive &£500.

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