Endowment Policies
An endowment policy is a savings plan with a life assurance element taken out for a specified term. The proceeds of the policy are paid as a lump sum when the policy reaches maturity and this is not an uncommon way of saving for the long term. The premiums on the policy cover the cost of the life assurance protection. The balance of the premiums is invested by the life assurance company to increase the value of the policy and over time the value of the policy may exceed the total of premiums paid, providing growth to you.
ISAs
Individual Savings Accounts are a way of saving and investing without having tax deducted from the returns you make. ISAs are available in two different types to cater to different needs. A Stocks and Shares ISA allows you to invest in company shares, investment trusts, unit trusts or OEICs with the ability to mix and match. A Cash ISA is similar to a savings account but with tax benefits. There are certain rules regarding eligibility for investment into an ISA and if you have any queries regarding this you can contact us for further information.
Banks and Building Societies
Usually the first place people begin saving their money. There’s plenty of choice and these are usually low risk ways of saving. However, by leaving your money in an account with little return your money will end up losing value over the long term as interest rates rise and costs go up. There are many types of accounts within banks and building societies, all with their own positive and negative points. Depending on your needs, you can choose from accounts with instant access, high interest rates, regular savers guaranteeing you save a certain amount every month, term accounts which lock your money in for a certain amount of time and notice accounts which require an amount of notice given to withdraw your money.
If your trying to build up your cash reserves and need advice on how to make the most of what you’re saving, get in touch.
