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.
Regular Savings
There are a range of options both for saving with regular contributions, or for putting away a lump sum.
While the bank deposit account is still an option, the cash Individual Savings Account (ISA) offers an opportunity to let your savings grow with no tax on the interest you gather in the account. The advantage 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 a savings plan. You can save up to £5,640 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.
Regular investments can also be made into longer term market-based investments. These should be taken out for a minimum of 5 years, and are available in a Stocks and Shares ISA or as a direct investment into the fund. The allowance for a Stocks and Shares ISA is £11,280 this tax year.
One of the advantages of investing regularly into investment funds (particularly within an ISA where they will grow free of Capital Gains Tax and Income Tax) is that you will buy into the fund at all stages of the market, thereby reducing volatility. Since you buy units or shares at higher prices when the market is up, and lower prices when it is down, this has an ‘averaging out’ effect, know as ‘pound cost averaging’.
Get savings advice on 0800 678 5929 or submit a savings enquiry
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