girl with piggy bankJan Haas/DPA/Press Association Images

The Children's Mutual has announced plans to shift the savings of nearly a million children into a rival friendly society.

The 130-year-old mutual, formerly known as Tunbridge Wells Equitable Friendly Society, said it has entered into "exclusive negotiations" with Canadian-owned Forester Life.

Need to know: Savings


The Children's Mutual has 927,000 customers with money locked into Child Trust Fund (CTF) accounts, whose parents invested Government vouchers.

CTFs were introduced under the previous government and the current one introduced Junior Isas, also known as Jisas, last autumn, which like CTFs are intended to encourage saving.

A parent whose child already holds a CTF cannot open a Junior Isa, and calls have been made for them to be allowed to convert the accounts to amid fears providers are reserving their best deals for Junior Isas.

The Children's Mutual is thought to have been looking for a buyer for some time, and Forester Life said the potential move could result in people getting better value for money.

Euan Allison, UK group managing director of Forester Life, said: "We believe that this potential transfer would be beneficial to both members of The Children's Mutual and our own members.

"We anticipate being able to provide better value for policyholders primarily through cost savings driven by economies of scale.

"It also offers the potential for all members to be a part of larger mutual organisation, supported by our parent organisation in Canada.

"Through the due diligence period we will work alongside The Children's Mutual to come to the best solution for all members."