If you’ve money to spare, you can save and/or invest it. With saving you put your money aside without risk, usually with the chance to earn interest. With investing, there’s potential for your money to grow more, but the returns aren’t guaranteed. Investing is generally more suitable for the longer term.
Main savings accounts
Banks and building societies savings accounts
With savings accounts you’ll always get back at least the money you paid in plus interest at the rate advertised. There’s a wide range of accounts to choose from, with key differences being how quickly you can get at your money, the minimum amount required to keep the account open and the type and rate of interest rate paid.
Open up a tax-free savings accounts called an ISA. The cash ISA carries little to no risk to your money.
For the tax year 2017-18 you can save up to £5,340 in a cash ISA if you’re a UK resident aged 16 or over.
Read more about ISAs and Junior ISAs in the section on investment products below.
National Savings and Investments
National Savings and Investments (NS&I) are government supported savings and investment accounts. This means that any money you invest is totally secure. NS&I offers tax-free products (including premium bonds); products offering guaranteed returns; monthly income products; children’s savings products – and more.
Credit Unions are financial organisations which are owned and run by members for members. You join the credit union to can save with them. It is also possible to borrow money but only what they know you can afford to repay. Credit Unions are usually set up to service people in the local area.