New 'little and often' saving plan launched

A new savings plan giving consumers the option of putting aside a small amount of money on a regular basis for their own or their children's future has been launched.

The so-called Easy Save option has been introduced by engage Mutual Assurance and is to be offered as a with-profits product exclusively through friendly societies.

It is hoped that the new product will help people overcome some of the barriers to saving money by allowing them to invest "little and often" and to give access to tax-exempt allowances.

"Our customer research tells us that customers want good returns while protecting their investment and without exposing their money to serious risk," said Karl Elliott, marketing director at engage Mutual Assurance.

"The Easy Save product will appeal to customers who want to save little amounts over a longer period of time with the potential for long term growth."

A report from MoneyExpert recently suggested a price war has broken out among providers of savings accounts as the base rate of interest continues to rise.