Tunbridge Wells Equitable is launching a university bond to allow parents to meet the escalating cost of higher education.
The friendly society is launching the bond in response to the Government's scrapping of maintenance grants and introduction of tuition fees.
The with-profits bond is designed as a monthly savings plan with a term of between 10 and 30 years. It is targeted at parents with young children.
The National Union of Students estimates that students need almost £6,000 a year, plus tuition costs of £1,000. The average student leaves university £3,000 in debt.
The bond gives three payments on maturity to cover each year the child spends at university. The minimum premium is £30 a month or £360 a year. There is no maximum premium but up to £25 a month or £270 a year can be invested tax free. There is a policy fee of £4 a year.