The RL360 Regular Savings Plan is a long-term offshore savings plan sold to expats through financial advisers. You pay in monthly, quarterly, half-yearly or yearly over a fixed term of at least five years, and the money is invested in funds chosen from RL360’s range. It is one of the most widely sold regular savings plans in the expat market, so it is also one of the most widely criticised. This page sets out how it works, what it costs, what the bonuses are worth, and what happens if you stop paying early, so you can decide whether it fits your plans before you commit.
It is written for UK expats living outside the UK. It is general information, not personal advice, and the figures come from RL360’s own adviser literature, which changes from time to time. Every figure is marked for checking against the current documents before you rely on it.
This is one of our product guides under regular savings plans for expats, which sits within our wider expat savings and investments section. If you already hold the older RL360 Quantum plan, see our RL360 Quantum review.
RL360 Regular Savings Plan at a glance
| Feature | Summary |
|---|---|
| Provider | RL360 Insurance Company Limited, Isle of Man |
| Type of plan | Regular premium offshore savings plan, on a life assurance or capital redemption basis |
| Availability | Open to new business, through a financial adviser only. Residents of Malaysia are offered a separate Regular Savings Plan Malaysia |
| Minimum term | 5 years |
| Currencies | GBP, USD, EUR, CHF, AUD, HKD and JPY |
| Minimum payments | From about USD 280 a month (or the currency equivalent) on a term of 10 years or more |
| Funds | Over 350 funds, with direct investment and no mirror funds |
| Main charges | Establishment charge, administration charge and a monthly servicing charge, plus fund charges and optional adviser fees |
| Bonuses | A starter bonus and a loyalty bonus, for longer terms |
| Early exit | Heavy penalties, especially during the first 18 to 24 months |
What is the RL360 Regular Savings Plan?
RL360 is an Isle of Man life company that sells offshore savings and investment products to expats and international investors, and only through financial advisers. The Regular Savings Plan is its current regular premium plan for global investors. It replaced older plans, including Quantum and Paragon, which RL360 closed to new business on 1 July 2019. People who already hold those plans can carry on paying into them, but new savers are offered the Regular Savings Plan.
The idea is simple. You agree to pay a set amount every month for a set number of years, from 5 to 30. The plan takes the payments, applies its charges and invests what is left in the funds you choose. At the end of the term, or when you start taking money out, you have a fund value that depends on the payments you made, the charges taken and how the funds performed. The plan has no guaranteed return. The value can go down as well as up.
Two points shape everything else on this page. First, the plan is built around a long term, and the charges are front-loaded. Second, the cost of leaving early is high. Both are normal for this type of plan, but they matter more than any individual fund.
Who it may suit, and who it may not
A regular savings plan of this kind can make sense in a narrow set of situations. It is not the right tool for everyone, and it is not the only way to save regularly as an expat.
It may suit you if:
- You are confident you can keep paying for the full term, and have an emergency fund set aside separately.
- You want a disciplined, automatic way to save towards a goal many years away, such as retirement, a home or school fees.
- You want access to a wide range of funds in a plan you can keep if you move country.
- You have considered the charges against simpler options and still prefer the structure.
It may not suit you if:
- Your income or location is uncertain and you might need to stop paying within a few years.
- You want easy access to your money at short notice.
- You would be paying through the plan for a goal that a simpler, lower-cost account could meet.
- You are being sold the plan mainly because of the bonuses, without a clear view of the total cost.
How the plan works
Payments and minimums. You choose the amount, the frequency and the term. Payments can be monthly, quarterly, half-yearly or yearly. RL360 sets minimum payments by currency and by term, and the minimum is lower for terms of 10 years or more. For example, its literature quotes a minimum of 400 pounds a month on a 5 to 9 year term and 200 pounds a month on a term of 10 years or more, with equivalent amounts in euros and US dollars. You can also add lump sums at any time, and you can vary your payments.
Currencies. The plan can be held in pounds, US dollars, euros, Swiss francs, Australian dollars, Hong Kong dollars or Japanese yen. If your income is in Hong Kong dollars or Malaysian ringgit and the plan is in pounds or dollars, you carry currency risk as well as investment risk, so choose the plan currency to match your future spending where you can.
Allocation. Not every pound you pay is invested at once. RL360 allocates 100%, 101% or 102% of each regular payment to units, depending on the size of the payment. Larger payments receive the higher rate.
The establishment period. This is the part that catches most people out. For the first 18 to 24 months, depending on the term, your payments buy establishment units, which carry the main charge. During this period, cancelling the plan means losing the whole amount held in establishment units. Only after the period ends can you stop or pause payments or take withdrawals without that penalty. A 20-year plan has a 20-month establishment period, for example.
Funds. You invest directly in funds, with no mirror funds. RL360 lists over 350 funds, including currency variants, from established fund managers, and fund switching is available online at no charge. The fund choice matters as much as the plan charges, because a fund with a high annual management charge adds to the cost of everything else on this page. See our guide to regular savings plans for how to compare total costs.
Life assurance or capital redemption. The plan can be issued either way. A life assurance basis pays a benefit on death. A capital redemption basis has no lives assured and can matter for estate planning and trusts. The choice is made at the start and cannot be changed later. It can also affect tax and inheritance planning, so take advice before choosing.
Charges explained
RL360 states its charges clearly in its literature, but they are spread across several items, which makes the total cost hard to see. These are the main ones.
| Charge | How it works |
|---|---|
| Establishment charge | 0.50% a month, taken from establishment units during the establishment period |
| Administration charge | 0.125% a month of the plan value, taken from establishment and standard units |
| Servicing charge | A fixed monthly amount, for example 7.00 pounds a month, taken from standard units. It rises each year in line with the Isle of Man retail price index |
| Fund management charges | Vary by fund, and are built into the fund price rather than shown separately |
| Adviser fees | Optional. An investment adviser fee and a financial adviser fee, each up to 1.0% a year of the plan value |
| Switching and dealing | No switching, dealing or custodian fees, and no bid and offer spreads |
What this means in practice. The establishment charge of 0.50% a month is 6% a year on the establishment units, and it is taken for the whole establishment period. The administration charge of 0.125% a month is 1.5% a year. Together with the servicing charge and fund charges, the total cost in the early years is much higher than the headline fund charge suggests, and it falls once the establishment period ends.
An illustrative example. Take a saver paying 400 pounds a month for 20 years. That is 96,000 pounds paid in. The servicing charge alone, at 7.00 pounds a month, is 84 pounds a year to start with, and it rises. The administration charge is about 1.5% a year of the plan value. These charges, plus fund charges and any adviser fee, are taken every year whether the funds rise or fall. The figures are for illustration only, not a forecast.
Adviser fees are optional and negotiable. If a financial adviser is paid through the plan, the fee comes out of the plan value and reduces what is invested. Ask any adviser to tell you in writing, in pounds or dollars, how much they will be paid and how, before you sign. This applies to us as much as to anyone.
Starter bonus and loyalty bonus
Starter bonus. For terms of 10 years or more, and for payments above a minimum level, RL360 adds extra units at the start. The bonus is a multiple of your monthly payment that rises with the term: nothing for 5 to 9 years, then 1.5 times for 10 to 14 years, 3 times for 15 to 19, 4.5 times for 20 to 24, and 6 times for 25 to 30 years. A saver paying 400 pounds a month for 20 years would receive a bonus of about 1,800 pounds on that basis.
Loyalty bonus. At the end of the term, the plan adds 0.25% of the final fund value for each year you have paid in full. Over 20 years that is 5% of the fund value. Years in which you paused or stopped payments do not count.
Are the bonuses real value? They are real, but they are not free. The bonuses are paid for by the charges, and the starter bonus units have no value if you cancel within five years of them being added. A bonus only helps if you complete the term. If you stop early, you can lose both the bonus and a large part of what you paid. When you compare plans, compare the total cost over the term, not the size of the bonus.
Stopping, pausing and withdrawing
Cancelling in the first weeks. There is normally a cooling-off period after you receive the plan documents, during which you can cancel.
Cancelling during the establishment period. The early exit charge is 100% of the establishment unit value. In practice, most of what you have paid in can be lost if you walk away in the first 18 to 24 months.
Cancelling after the establishment period. A charge still applies, as a percentage of the establishment unit value that falls as the term runs down. The earlier you leave in a long term, the higher the charge. The exact percentages are in the plan terms, so ask for a surrender value quote before making any decision.
Stopping payments instead. After the establishment period you can usually stop and restart payments, which keeps the plan alive without cancelling it. The money already invested stays in the funds and continues to pay charges. Stopping also means you lose loyalty bonus years and may affect the starter bonus.
Taking money out. Withdrawals are available after the establishment period, with a minimum amount, and are limited to what the plan terms allow. You can usually take a regular withdrawal or a one-off amount. Withdrawals can have tax consequences depending on where you live, and they reduce the fund value.
If your circumstances change. Many expats stop paying when they change job, move country or return to the UK. If you think that might happen within the term, a plan with this structure may not be the right choice. If you already hold a plan and are thinking about stopping, take advice before you do, because the cost of leaving depends on exactly where you are in the term.
Tax for UK expats
The plan is issued in the Isle of Man, where the company is not taxed on the growth inside the plan in the way a UK fund would be. That does not mean the plan is tax-free for you. Your own tax depends on where you are resident when you take money out, and rules differ widely. Some countries tax gains on offshore plans, some do not, and some treat plan payouts as income in a particular way.
If you return to the UK, gains in an offshore plan are treated as chargeable event gains, and the tax can be significant. For UK expats who may come home, this is a reason to think about the plan’s position before you start. See our guides to offshore investment bonds and inheritance tax for UK expats for the wider picture.
If you live in Malaysia
RL360 offers a separate Regular Savings Plan Malaysia for Malaysian residents, in addition to the plan for global investors described here. If you live in Malaysia, ask which version you would be offered, because the terms, currencies and tax treatment can differ. We have offices in Kuala Lumpur and Hong Kong, so we can explain how each fits your position.
How it compares with other plans
Most offshore regular savings plans share the same basic design: a long term, a front-loaded charging structure and heavy exit penalties. The differences are in the size of the charges, the bonuses, the funds and the flexibility. We have separate guides to regular savings plans in general and to specific plans, including Zurich Vista, FPI Premier Advance and Investors Trust Evolution.
A simple test applies to any of them. Ask for the total cost of the plan over the term, in money, assuming you pay to the end and assuming you stop at years 5 and 10. If the adviser cannot show you all three, you do not yet have enough information to decide.
Questions to ask before you start
- What will I pay in total, in money, over the full term, including adviser fees?
- What do I get back if I stop after one, two, five and ten years?
- What is the exact establishment period for my term?
- Which funds will I use, and what do they charge each year?
- What are the tax consequences in the country where I live, and if I move?
- Would a simpler, lower-cost option meet the same goal?
RL360 Regular Savings Plan: frequently asked questions
1. Is the RL360 Regular Savings Plan safe?
RL360 is an Isle of Man insurer regulated by the Isle of Man Financial Services Authority, and policyholders may be covered by the Isle of Man compensation scheme. That protects against the insurer failing. It does not protect against falls in the value of your funds, which are not guaranteed.
2. Can I take out the plan directly?
No. RL360 accepts business only from financial advisers.
3. How much do I have to pay in?
The minimum depends on the currency and the term, and is lower for terms of 10 years or more. See the section on payments above.
4. What happens if I stop paying in the first two years?
You are likely to lose most or all of what you have paid in, because the early exit charge is 100% of the establishment units during the establishment period.
5. Can I pause payments?
Yes, after the establishment period. The plan stays in force and continues to pay charges, and you lose loyalty bonus years for the time you do not pay.
6. Can I change the funds?
Yes. Fund switching is available online and RL360 states there is no switching charge.
7. What currency should I choose?
Choose the currency that matches where you expect to spend the money. A mismatch adds currency risk on top of investment risk.
8. Is it better than the old Quantum plan?
The two plans work in a similar way, and the Regular Savings Plan is the one RL360 now sells. Moving from Quantum to a new plan would start a new establishment period and new charges, so a switch is not automatically better. Read our RL360 Quantum review.
9. What happens when I die?
The benefit depends on whether the plan is a life assurance or a capital redemption plan, and on how it is owned. Check the plan terms and take advice, especially if you want to use a trust. See our guide to wills and trusts for UK expats.
10. Can I use it for school fees?
It can be used as part of a plan to fund school or university costs, but its long term and exit penalties mean it suits some timelines better than others. See our guide to school fee planning for expats.
Talk to an adviser about regular savings
If you are thinking about a regular savings plan, or you already hold one and want it reviewed, we can walk you through the numbers: the total cost, your exit position at each stage and the alternatives. Request a callback and we will arrange a time that suits your time zone.