Savings
Saving, in its various forms, has always been the cornerstone of good financial planning.
In the current climate it is difficult to find a good savings rate that beats inflation. Talk to our savings experts who can help you find the best place for your money.
Are you saving for something special? Use our Saving Planner to see how to achieve your savings goals.
In the shorter term, as we progress through our financial life from piggybank to portfolio, the savings habit ensures that we have something in store for the inevitable rainy day.
And as our savings pot grows, it may bring us to the point where we can make our first investment, as well.
Saving even modest amounts each month is an important aspect of financial life, and savings are the lifeblood that sustains our financial wellbeing.
Regular Savings
It is probably fair to say that when most of us think of saving, we think of how our parents saved: in current or deposit accounts with their bank.
The world has changed a little since then, and the financial services market has evolved.
Today there are a range of interesting options both for saving with small, regular contributions, or for putting away a lump sum.
While the bank deposit account is still an option, the cash Individual Savings Account (or cash ISA) offers a very attractive opportunity to let your savings grow, with no tax on the interest you gather in the account. The beauty of the cash ISA is that, as your money is held in cash, you are combining tax-free growth with the security of a bank account.
An independent financial adviser can pinpoint those products that currently offer the best savings rates, within the parameters you have chosen to suit your own investment preferences.
ISAs are available which allow regular monthly contributions, as part of an ISA savings plan, and as of April 2010 you can save up to £5,100 per year free of tax in a cash ISA. ISAs are also available which invest your money in the stock markets, but due to the nature of this type of investment it is better suited for long-term saving of 10 years or more.
The same is true of the various options for saving in funds products.
While using collective investment products such as unit trusts or Open-ended Investment Companies (OEICs) is perhaps associated with single payment investments, many now also offer regular savings options that function like savings plans.
Children’s Savings
The aforementioned evolution of the savings sector has produced a goodly number of savings options specifically designed for our children.
The government’s Child Trust Fund scheme has led to the creation of a range of investment funds where money can be left to grow for our children to collect (or keep invested!) when they turn 18. A total of £1,200 per year can be added to the accounts, not only by parents but also by relatives and friends. What a great way to give a child an alternative birthday or Christmas gift that will not end up, forgotten, on the toy room floor!
Other options for children are children’s savings accounts, and the Child Stakeholder Pension, which allows you to save cash for your child in a pension fund, for real long-term growth that they can enjoy in their retirement.
Each of these savings options has its own advantages and characteristics, and by carefully considering your personal goals and circumstances, our savings specialists can explain which is appropriate for you.
