If you want to plan for your future, whether that be short term or long term, you need to think about saving your money and making it stretch as far as possible. There are a variety of options available to those who want to save and these will depend on your circumstances and how much you want to put into your investment. There are various types of options available to savers and each comes with its own benefits, from the short term savings accounts to the long term investment management.
Bank Savings Accounts
Most banks will offer savings accounts and these will differ with the rate of interest. A bank savings account is ideal for both short and long term savings and you can save as much or as little as you wish. You can also change the amount you want at any time. It is a good idea to look around at the rates of interest available before deciding on which bank savings account to opt for, as these can differ greatly. A comparison website will help you work out which bank will provide the best options for your savings.
Online Investment Management
If you are looking to the future and want to save with your long term goals in mind, enlisting the help of an Nutmeg company, such as nutmeg can be a worthwhile prospect. With investment management, you will have professionals investing in stocks and shares on your behalf, so there is risk involved but there is also the potential to make much more than using a savings account. You can keep an eye on your investment online and take out your funds whenever you wish.
ISA’s are savings account and are a tax efficient way of saving. There is a restricted ISA allowance of £15,000 and there are two types of ISA’s, which are designed for both short and long term needs. The cash ISA is ideal for savers who want instant access to their funds. Stocks and shares ISA’s are for long term needs and for those who are looking to invest in the future. Cash ISA’s are available from most high street banks, whereas stocks and shares ISA’s can be accessed from brokers or some high street banks. You can invest in one type of ISA or split your allowance between the two. Younger savers can also save through the Junior ISA.
You can also choose to save your money in a credit union, which is a community based way to save your money. There is typically a wide range credit unions available in most areas and the good thing about these is that you usually won’t have access to your funds straight away, so it is ideal for those who are looking at long term saving. You can choose to save as little as you wish, usually from about £10 so even if you can only afford small savings, this will start you off on the right track.