Tesco has launched a Child Trust Fund (CTF) in a drive to encourage eligible parents to cash in their vouchers. It says the initiative aims to make it easier to parents to save for the children’s future.
The fund, which was launched this week, will be supported by an in-store campaign to raise awarness among shoppers. It follows the launch of a CTF by loyalty reward scheme Nectar, which was revealed on marketingweek.co.uk.
According to a report issued by the Government last month, 98% of parents who are eligible to take part in the scheme are aware of the benefits of opening an account but around a quarter of those families have yet to do so.
The Child Trust Fund scheme was launched by the Government in 2005 to kick-start the savings for all children. Babies born from September 2002 onwards receive a voucher of either £250 or £500 at birth and another of the same amount at age seven. Children gain access to the money from their 18th birthday.
The initiative has been widely criticised for failing to reach and inform parents despite heavy advertising campaigns and direct marketing drives.
Tesco Personal Finance, the financial services arm of the supermarket was launched in July 1997 as a joint venture with Royal Bank of Scotland Group. It offers 25 financial services products including insurance, loans, savings and investments.