Is a Stocks & Shares ISA for me?
So you’re smashing your 2020 savings goals, sticking to your budgets and putting spare money aside... maybe you’re even using our 1p savings challenge. You’re well on your way to becoming the money savvy king or queen you’ve always wanted to be but now you’re wondering “where exactly should I store my savings?”
We get it, never before has there been so many options. From ISAs to fixed-rate bonds, regular saver to instant access, there's a savings account to suit every need but which one is best for you and what will help you get the most out of your money?
Firstly, you need to work out exactly what it is you’re saving for and whether you want to reach that goal in the next 12 months or over a period of years. This will help determine what savings account is better for you.
If you have medium to long-term saving goals such as saving for retirement or a house deposit, you may want to consider looking at investing your money to help it grow.
With a Stocks & Shares ISA
for example, your savings are invested in a range of assets, including stocks and shares. These investments are made with the aim of achieving higher long-term growth than you may get with a cash ISA. This means you could potentially get back more than what you’ve put in but you’ll want to do this over a period of years in order to get maximum growth.
An ISA (individual savings account) is a government backed tax efficient savings plan and buy saving into one, you are protecting any potential returns from the taxman.
Unlike some savings accounts, with a Stocks & Shares ISA
you can access your money as a tax-free cash lump sum, if and when you need it. You can increase, decrease or even cancel your payments and take chunks out at a time, leaving the rest in there to continue to grow.
You can save up to £20,000 this (2019/20) tax year with a Stocks & Shares ISA
. This means that you’ll want to invest as much as you can prior to 5th April to make best use of your allowance. Once the new tax year has started, any remaining allowance from the previous year won’t be carried over but you can still save up to £20,000 tax free again.
We get that the idea of investing can be a little daunting and it’s worth noting that a Stocks & Shares ISA
with Shepherds Friendly fall into a low-medium risk category. This means they aim for smoother long-term growth but you do need to remember, your capital is at risk.
To open a Stocks & Shares ISA
with Shepherds Friendly, all you need to do is deposit from £30 a month or an initial lump sum of £100 or over. It’s quick and easy to set up and then you’re well on your way to achieving your saving goals.
Invest in a Stocks & Shares ISA with Shepherds Friendly and get £50 Cashback .
Capital at risk. You should not rely on this information when making financial decisions as no financial advice has been given.