Legal and General has launched a corporate cash individual savings account (Isa).
Its WorkSave cash Isa accepts contributions directly from payroll and can be topped up online using a debit card. The minimum regular contribution is £50 per month.
Working with HBOS, Legal and General is offering investors 1% interest on their savings. The Isa offers a consistent rate of interest for the duration of an employees’ savings.
Employees can make additional contributions at any time, at a minimum of £50; employees can transfer existing cash Isas; and employees can make withdrawals at any time, at a minimum of £50.
Legal and General has also made changes to its stocks and shares Isa, extending the funds available to 38. The selected funds offer a varying range of risk. Savers can also invest in UK shares from the London Stock Exchange, and can transfer money and shares from existing Isas and investments.
Tony Filbin, managing director of workplace savings at Legal and General, said: “We offer employees the convenience of saving at work direct from their pay with the added benefit of sheltering their savings from tax to maximise returns.
“The WorkSave Ccsh Isa gives employers a flexible savings plan which should appeal to all members of staff and can play an important role in kick starting long-term saving for younger employees.
“There has been wide interest from our clients in take up of cash Isas since we revealed we were developing a payroll deduction product at the end of last year. We already have three medium-sized employers planning to roll out WorkSave cash Isa in the new tax year and several large organisations, which tend to have longer lead times, lined up for later this year.”
Jane Ridgley, investment and product development director at workplace savings for Legal and General, added: “Our WorkSave Isa provides employees with the same tax efficiency as a personal stocks and shares Isa, but with the added benefits for employees of much lower management charges and the convenience of making payments from payroll deductions.
“It is now possible for employees to take advantage of a wider choice of funds to suit their needs whether they are looking for growth, income or both. The major benefit of the WorkSave Isa is its flexibility. Our new WorkSave cash Isa provides employees with an additional cash savings option.
“We are continually looking to improve the benefits we offer employees, which is why we are extending the choice of funds for our WorkSave Isa. We will regularly review our fund range to ensure we continue to offer an extensive choice of funds that suit the needs of employees while addressing the important issue of improved governance for employers.”
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