What is the best investment plan out there?
I am 24 years old and interested in using an investment plan or fund to save some money for the future. I already have an ISA account, but that does not allow me to actually save money as I am still able to dip into it when I need to. I have heard of companies such as AXA and was just wondering what the best/ reliable company or investment plan to use is if I want to save money every month. I only want to save about £20 or £30 every month if I can. Please provide websites if possible. Thanks
Public Comments
- actually an ISA should ALWAYS be the 1st tool in any savers or investors arsenal. the reason is because ISA's are tax free therefore any other investment vehicle will have to give a considerably higher rate of interest to match the ACTUAL savings in an ISA. Also if you are "dipping" into your ISA you are really not using it to its potential as any money you take out is still taken into consideration for the total you can put in an ISA per year eg. if you put £3600 in an ISA then took out £600 the following month you cant then top up the ISA with a further £600 until the next tax year therefore losing interest on £600 If you want something which wont allow you access to your capital for a set period consider N&SI as these are government backed bonds that lock away your capital fo a set period hope that helps
- It depends on how long you want to save for and whether you are prepared to take any risk, in return for the potential for a better rate of return. If you do not want to take any investment risk, your best bet is to save each month into a Cash ISA. If you are concerned about dipping in to it, you could have a limited access Cash ISA e.g. 3 month notice, etc, for your longer term savings and a savings account for everything else. Not the most tax-efficient way, but it should help to avoid you spending your savings. Given that savings interest is so low, it's not such a big issue now anyway. Aside from a bank account or Cash ISA, National Savings & Investments (NS&I) don't really have any products for your budget. If you are saving for the medium to long term i.e. 5 years or more, have you considered a Stocks & Shares ISA? You can save up to £7,200 each year in ISAs, up to £3,600 of which can be in cash. The only issue is going to be finding a good enough one which allows you to save only £20-£30 each month. Most have a minimum contribution of £50-£100 per month. Alternatively you could look at a Friendly Society Savings Plan; these allow you to save up to £25.00 per month, tax-free. I think they are underused. I've attached some links below. As to what the best fund or company is, that's too subjective to answer. It depends on where you want to invest, risk, how long you want to invest for etc. Speak to a good independent advisor and they will make a recommendation that suits you best. Regards.
