Supermarkets including Sainsbury and Tesco are believed to be considering entering the market for child trust funds Money Marketing understands that Sainsbury and Tesco are both looking at the market. Both supermarkets have loyalty points schemes which enable them to target customers expecting children with life insurance and they would easily be able to extend their systems to child trust funds.
The child trust fund is part of the Sandler suite of products which many providers are backing away from, deeming the 1.5 per cent price cap too low for profitability. So far, only the Children's Mutual and Norwich Union have committed to child trust funds.
Last month, Tesco revealed that it will be adding mortgage products to its personal finance scheme and some in the industry are tipping Asda as the next likely supermarket entrant into mortgages.
Sainsbury's Bank pulled out of the mortgage sector in July to reassess its range.
A spokeswoman for Sainsbury's Bank says: “Sainsbury, in common with the rest of the industry, looks at new services or ideas that could benefit consumers but nothing specific has been decided on child trust funds.”