UK residents can enjoy greater returns by taking advantage of the government controlled tax free savings program. Under the regular savings plan, you invest a maximum of £25 a month tax free, meaning you will not pay for tax gains on the first £25 of all investments you make every month.

A regular savings plan is a long term plan, scheduled to last for 10 years. You can choose to pay only the allowed tax free maximum (£25) or more; you would still accrue a substantial amount of money at the end of the ten years.

Payments start from £15 a month, and there is no limit to how much you can invest. What happens is that the amount in excess of £25 will be deposited in a separate account, where it draws tax interest on all interest and gains made. If you deposit at least £30 or more in regular savings every month, your guaranteed minimum amount will be increased to match the amount of premiums paid. This is done to minimise the effect of the charges you pay on the taxable amount. This easily translates to a higher payout; and the higher your payments, the higher the payout will be.

Regardless of how much you make in payments, the minimum payout is guaranteed. Do not approach the plan with the intention of making it a short term venture. Give the plan time to mature in order to maximise your returns. If you wait 10 years (the full life of the plan) before taking out the benefits, you will get a much higher amount than if you cash it after only a few years.

In addition to the minimum payout amount, your account will earn regular bonuses that will add up to the total amount of money you get at the end of the plan’s life. A final bonus is given at the end of the ten years, based on the amount of money accrued at the end of the plan life.

Each plan comes with a life cover that fully secures your future. The type of life cover you get is determined by a number of factors, including your age, health and amount and varies from individual to individual. Those who invest at a much younger age and are of sound health will have a more extensive cover than those who take up the plan at an advanced age. They will have even better coverage if they invest a substantial amount of money every month.

The most unique thing about these tax free savings is that they combine investment, earnings and insurance, all in one package. No one knows whether the bill giving life to the £25 tax free investment will be there in the future as laws are subject to change in due course. So, take advantage of it while it lasts and save money for a rainy day in future. It is an excellent plan that can be used for personal, family or child savings. Even with a minimal payment of £15 every month, in ten years the sacrifice is guaranteed to earn you close to £5,000.