Investments and Regular Savings
Profitable investment of surplus funds can make a strong contribution to your personal investment
portfolio. Please note, many of the investments we may recommend can go down in value as well as up.
Don’t wait until it's too late to start saving!
It can be difficult to save money whilst trying to run a household and look after kids. But if you
can put some aside, it will help you plan more accurately for the future and ensure there’s some left
for those unexpected emergencies.
Short term savings
It’s a good idea to have some money put aside in case you should suddenly need it. If your car
breaks down or you want to take the family to Spain, you will need a readily available fund.
Separate your savings from your day to day money. You can often get a savings account that offers a
higher rate of interest than a current account. Make sure you can access it quickly if you need the
money at short notice. Try to put a small amount of money into your savings account regularly.
You may be able to set up an automatic transfer from your current account. If you coincide this with
payday, you will hardly notice the money is gone.
Long term savings
Saving for the big things, like a home, investment property or your retirement takes a bit more time.
You may like to invest your money so that you earn more interest. Deciding where to invest your
money will depend on how much you have and your approach to risk. Rather than leaving your money in a
bank account, you could earn more interest by investing it. You have a few options, such as an
Individual Savings Account (ISA), property or shares.
Child Trust Fund
The government now gives all newborn children a minimum of £250 in the form of a Child Trust Fund
to encourage saving for the future. The money is given to parents to put into a deposit or low risk
investment account and will not be available to the child until they are 18. In addition, the
government has promised that it will make a one-off payment into all Child Trust Funds when children
reach the age of seven. The amount of that sum has yet to be announced. Although £250 will not go far,
it is hoped family and friends will add to the funds to build up the savings (contributions of up to
£1,200 a year are allowed).