Nectar, the UK’s largest retail reward scheme, is launching a Child Trust Fund (CTF) that can be topped up with loyalty points. Nectar-owner LMG has teamed up with financial services specialist Family Investments to provide the account.
The fund allows Nectar users to supplement the account by using points saved, either online or by phone. Customers who open an account will also earn 1,000 Nectar points and another 1,000 for setting up a regular direct debit.
Family Investments provides CTFs for more than 400,000 customers. CTFs were introduced by the Government for children born after September 2002 with the first vouchers, worth between £250 and £500, being issued in January 2005. The Government was widely criticised at the time for the scheme, which despite heavy advertising campaigns and direct marketing drives initially failed to attract parents’ attention.
LMG launched the Nectar programme in the UK in 2002. Its retail partners include supermarket Sainsbury’s and Threshers, while earlier this year it teamed up with Gala Bingo.