The four products have been designed by a special steering group set-up by the Treasury to look at how financial products such as savings accounts and life insurance products could be simplified.

The products include an easy access savings account; a 30-day notice savings account; a regular savings account; and fixed term life insurance product.

All simple financial products will comply with an agreed set of high-level principles, which cover product features, language, terms and conditions, pricing transparency, purchasing process, and regular information and product updates.

The language used in the products will be straightforward and consistent between products, and all key terms and conditions will be the same for each product, making them easier for people to understand and compare.

However, it is not clear when the products will be launched.

Steering Group Chair, Carol Sergeant, said:

“We have known for a long time that being able to manage your finances effectively leads to increased well-being and a better quality of life, at every given level of income. I hope that the simple financial products initiative will make it easier for people to understand and compare the key financial products they need and make good choices with confidence.

“It is now really important to make the recommendations a reality.”

A badge will be created and awarded to qualifying products which will have all gone through a robust accreditation process.

The Government’s Money Advice Service has said it will provide support and guidance about these simple financial products when they become available.

Caroline Rookes, CEO of the Money Advice Service said:

“The complexity of financial products is a big problem for many people, so I’m all in favour of simplicity. The more people understand savings products, the more likely they are to save and be prepared for life’s ups and downs. The same goes for insurance. New, simpler products resulting from the recommendations of this report, combined with free, impartial and easy-to-understand advice from the Money Advice Service will help put millions of people on a firmer financial footing.