Partnership taps into demand for tax beneficial savings

Clydesdale Bank and Yorkshire Bank have launched a new tax exempt savings plan in partnership with Engage Mutual Assurance.

The Vision Tax Exempt Savings Plan takes advantage of the government's special tax exempt friendly society savings allowance, allowing UK savers a tax benefit when saving over a minimum 10 year period. This means that any growth in their savings is tax exempt. The plan also provides a tax free lump sum at the end of the saving term.

Clydesdale and Yorkshire's 340 branch network will market the plan to customers seeking a tax favoured longer term savings vehicle in addition to their ISA allowance. The plan can also be purchased as a child's savings plan, providing a similar tax advantage on any savings' growth.

Engage Mutual's chief executive, Andrew Haigh, sees it as an opportunity to increase share of the UK savings market for both partners, and commented: "Initially through Yorkshire Bank's and Clydesdale Bank's strong branch networks, and subsequently online, we will be seeking to raise awareness of the benefits of tax exempt saving - among families who need their savings to stretch that bit further and work that bit harder, and with those who are seeking a vehicle for long term saving. "

The new agreement builds on a highly successful two year distribution partnership for the engage Guaranteed 50 Plus Life Cover.

Engage Mutual is a family-oriented modern mutual and friendly society, providing products that help families plan to meet their future financial needs.

The Vision Tax Exempt Savings Plan seeks to tap into a renewed consumer appetite for long term saving, providing a chance to invest with an element of protection. The plan promises a guaranteed minimum cash lump sum at the end of the payment term, provided all due premiums have been paid, the plan reaches the end of its term and is cashed in within 28 days.