Allstate Northern Ireland has launched a payroll individual savings account (Isa).
The WorkSave Isa, which is a stock and shares Isa and is provided by Legal and General, has an annual allowance of £10,200 for the 2010/11 tax year. It has no income tax or capital gains tax.
Employees can make regular contributions via payroll with a minimum investment of £50. Additional contributions can be made at a minimum of £200.
Employees can transfer funds from existing Isas and can make withdrawals at any time with a minimum of £200. The Isa can be integrated with a group self-invested personal pension (Sipp).
Bro McFerran, managing director at Allstate, said: “The Allstate WorkSave Isa has just gone live and we are encouraged that a number of employees have already signed up with monthly contributions ranging from £50 to £250 per month.
“We anticipate there will be a high demand next March as we approach the end of the current tax year and then again in April when the new Isa allowance becomes available.”
Tony Filbin, managing director of workplace saving at Legal and General, Workplace Savings, added: “Regular contributions Isas are set to revolutionise benefits provision as employer saving schemes respond to meet the changing needs of today’s workforce.
“Whether employees are saving for short-term needs, such as a saving for a house deposit, or the longer term for income in retirement, the provision of a company Isa makes it easier for them to start saving as early as possible.”
Read more articles on payroll individual savings accounts