Other Forms Of Saving

What is a saving certificate?

A saving certificate is issued by national savings and investments banks by the UK Treasury, so a hundred percent secure. Saving certificates come in two forms: fixed interest or index-linked. With a fixed interest saving certificate you know the amount of money you're going to get for a set term, for example over two years or five years. With a index-linked saving certificate, the returns you get will be linked to the base rate, again over a period of time, usually two to five years. You don't receive a regular income with a saving certificate; it's capital that's invested for a period of time. At the end of that period of time, usually two or five years, you have your capital returned, and any interest that's been added, tax-free.

Which forms of saving are tax free?

There are a number of forms of tax-free savings. The tax free forms of saving that are issued by National Savings and Investments are Premium Bonds, Index-linked and Fixed-interest Savings Certificates, and Children's Bonus Bonds. Outside of National Savings, you can also invest in ISAs (mini and maxi), cash, or stocks and shares. They are also tax-free, as are child trust funds.

What is ethical saving?

Ethical saving, sometimes called socially responsible or green investing, is a way of investing with a conscience. Ethical investing can be positive, for example, investing in companies actively seeking to do good - recycling etc. Alternatively, it could be avoiding companies that really don't sit with your principles, such as armament companies.