A Medium Term Investment Plan (MTIP), Legal General's first sandler product, will be introduced today.

The MTIP has minimum investment amount of only £20, which can be invested either as a lump sum or as a regular monthly premium.

This follows soon after the Government's initiative to promote saving through stakeholder products.

Without paying any initial charge, investors are looking at annual expenses of only 1.32 per cent - still below the government stakeholder ceiling of 1.5 per cent.

Claire Stacy, retail investments marketing director, said the MTIP is in line with the company's objective of offering consumers good value for money products.

We very much support the Government's initiative to increase the overall level of savings and we have developed the Medium Term Investment Plan for that segment of the public who have not previously invested and who we believe will find this type of product very appealing blending both equities and corporate bond investments, he added.

The MTIP will be available as an ISA and Unit Trust via the Legal General Distribution Trust.

The trust invests in a combination of equities and bonds, with at least 60 per cent always invested in corporate bonds.