It's a good idea to check with your bank or building society whether you should get tax-free interest on your savings and investments.

Thus the fund earns more tax-free interest than would have been possible otherwise.

Universal life insurance is more like a savings account, with the premiums paid on the policy accumulating value while earning tax-free interest.

He said a few companies had considered covering the future costs by buying life insurance, which would build up tax-free interest and pay off when employees died.

The centerpiece of the Administration plan is a new account that offers tax-free interest on money left on deposit for at least seven years.

And the fund earns tax-free interest for further gifts, Mr. Kent said.

The one exemption - which is tax-free interest - is any paid on a first-home saver account.

To benefit from tax-free interest, you must leave your money in for five years.

Whether or not they are affected depends upon their income from several sources, including pensions, Social Security benefits and even tax-free interest.

The up-front expense would be considerable but the insurance could grow with tax-free interest, reducing a company's liability under the new accounting rule.