Saving Money
General Information on Options for Saving and Investing Money
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Options for Investing
There are several methods of saving for the future with the following advantages and disadvantages are:
- Deposit - short-term no risk but over the long-term value is eroded by inflation
- Pensions - tax relief on the contributions so £80 contributed is £100 invested
- Individual Savings Accounts (ISAs) - allow you to invest up to £7,200 a year into cash, company shares and corporate bonds in a tax efficient environment. Neither Income tax on the income they produce, nor will Capital Gains be taxed on the profits.
- Unit Trusts - same as ISAs but with out the tax benefits
- Life Bond - inflexible, not tax efficient, higher charges Pooled Investment