Legal & General has launched a regular contribution corporate cash Isa.
The WorkSave cash Isa accepts contributions directly from payroll and can be topped up online using a debit card, with a minimum regular contribution of £50 per month. L&G says it is the first regular contribution coporate cash Isa product in the UK.
L&G managing director, workplace savings Tony Filbin (pictured) says three medium sized businesses are planning to roll out the product in this tax year, while several larger companies have been lined up for “later this year”.
He says: “The WorkSave cash 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.”
L&G has partnered with HBOS, which will act as deposit taker. The interest rate on the product is guaranteed to track at 0.5 per cent above the Bank of England base rate.