Investments & Savings
While "savings" is generally a term applied to regular (e.g. monthly) savings, "investments" tend to refer to lump sums. Whether you are seeking to invest a lump sum or save on a regular basis, managing risk in the increasingly diverse and complex investment market is very important. We can offer advice across a wide spectrum of investments, namely:
- annuities
- bank and building society accounts
- guaranteed income and growth bonds
- insurance bonds
- investment trusts
- national savings products
- offshore funds
- regular savings plans
- individual savings account (ISAs)
- unit trusts and OEICs
If you are saving towards a lump sum, or over a fixed period, you may wish to try our simple savings calculators to see how long it will take, or how much you will have at the end. Click on the calculator symbol to try our useful tool
Individual savings accounts (ISAs)
Individual Savings Accounts (ISA's) were introduced by the government in April 1999. They replaced the PEP (Personal Equity Plan) scheme, and like the PEP are essentially just a wrapper, which gives the underlying investments tax-free status.
Many people find ISA's more complicated because the rules allow you to hold cash within the scheme as well as stock market investments such as shares, OEIC's and unit trusts.
There are two types of ISA - cash or investment.
Cash ISAs
You can invest in two separate ISAs in any one tax year: one cash ISA and one investment ISA. The investment can be with the same or different providers.
You have an overall ISA allowance of up to £7,200 (2008/09 tax year) and up to £3,600 (2008/09) of that can be saved in a cash ISA and the rest in an investment ISA. Or you can invest the whole allowance in an investment ISA, but with one provider in any one tax year.
Investment ISAs
By using an investment ISA you invest in longer-term investments such as:
- individual shares or bonds, or
- pooled investments such as open-ended investment funds, life assurance investments or investment trusts.
You can transfer money from a cash ISA to an investment ISA - but not
the other way.
You do not have to pay any income tax or capital gains tax on the growth
of the ISA investments. This helps anyone who pays tax.
With effect from April 2008 PEP's have been brought within the ISA regime and there is now only one type of ISA. The annual investment limit has risen to £7,200, with a maximum of £3,600 in the cash component. You may invest in two separate ISA's (with potentially different providers) subject to the maximum limits of £7,200 and £3,600.
You can buy an ISA at any time during the financial year, or contribute on a monthly basis.
To invest in an ISA you must be resident in the UK and be over 18 years of age (or 16 for investment in the cash component only).
