Stakeholder suite

The previous CAT standard has been replaced by the stakeholder product suite with effect from 6 April 2005.

The stakeholder product suite will include three types of savings vehicle to meet various savings needs:

• Cash deposit account
• Medium term investment product
• Revised stakeholder pension

Providers can now offer ISA versions of the stakeholder cash deposit account and the stakeholder medium term investment product.

The stakeholder cash deposit account will be able to give savers a better deal while offering many of the same features as the CAT standard cash ISA.

The stakeholder cash deposit account will have to offer an interest rate no less than Bank of England base rate minus 1% (rather than minus 2% under CAT standards), while it could also offer the same tax advantages as the CAT ISA.

The stakeholder medium term investment product will provide risk controls as well as having charges capped at 1.5% AMC for 10 years followed by 1% thereafter.