SOME SAVINGS AND INVESTMENT OPTIONS

With interest rates at low levels it is a struggle to get much of a return on your cash savings. It is very sensible to keep a reasonable amount of money in cash for emergencies and for anything you will need to pay for in the near future. However, in the longer term you may wish to take a risk with some of your savings by investing them in stocks and shares. One easy way to do this is to use a Stocks and Shares ISA into which you pay monthly. By saving on a monthly basis the risk is less as sometimes you are buying when the market is high and sometimes you are buying when the market is low.


For those with a lump sum they are willing to invest for 5 years or longer, it may be worth looking at an Investment Bond. The money you put in is invested in a range of stocks and shares. You can decide at the start what level of risk you are willing to take, and you can change that whenever you wish. The Investment Bond has a useful feature. Each year you can withdraw up to 5% of the amount originally invested without paying tax. This would give you an annual amount of 5% net each year. This compares well with the 1% to 2% you might get from cash savings options, although you do need to take into account that the value of your investment overall will be going up and down in line with the Stockmarket. We would be happy to discuss this option with you in more detail. Just give us a ring.