Build your nest egg with monthly savings
Financial security does not come overnight. With the exception of the ‘windfall rich’ who come into an inheritance or a lotto win, most of us build our wealth over time. Regular monthly savings are a great way of building a reserve for a rainy day, and at the same time getting into the savings habit as well!
Today could well be called The Age of Saving, as never before has there been such a range of tax efficient savings accounts, to help build that cracking little nest egg through monthly saving. Perhaps the most popular option is using ISA savings to take advantage of tax-free growth on our money.
Why not ask our savings team about monthly savings? Make an online savings enquiry or ring 0800 678 5929 now!
Tried our savings calculator? Work how much to put away to reach your savings goal
Monthly savings – the ISAs option
Since their introduction in 1999, Individual Savings Accounts or ISAs have become one of the most popular savings accounts available.
There are 2 kinds of ISAs, the cash ISA and the stocks and shares ISA, both available through a number of monthly saving plans. The cash ISA provides tax-free growth combined with the security of a bank or building society account, giving it a clear advantage over bank savings where the growth in your money is subject to tax of at least 20%. If you are saving monthly in a stocks and shares ISA, your money is invested in the stock markets, and while this is a little more risky than cash, there is the prospect of a higher return, over time. For that reason, monthly saving in the stocks and shares ISA is recommended only for those who can leave the money invested for 10 years or longer.
The annual ISA allowance is currently (2012/13) set at £11,280. All of this can be saved in a stocks and shares ISA, or it can be divided, half and half, between that and the cash ISA. It is not allowable to save more than £5,640 per year in a cash ISA.
Don’t delay – start today with your monthly savings! Make an online savings enquiry or ring 0800 678 5929 now.
