Investing always means weighing up risk against reward. This is an at-a-glance look at the main types of saving and investment, with the key points to note for each. It's general information, not personal advice — we'd always recommend getting advice suited to your own circumstances before making any decisions.
A few things to keep in mind
Market dynamics
Investment performance moves with the market and the wider economy. Your capital is always at risk, and currency movements can affect value too.
Equity-based investments
Unlike a deposit account, equity-based investments offer the potential for growth but don't give the same security of capital. It's important to understand both the potential rewards and the risks of each choice.
Tax
Tax treatment depends on your individual circumstances and can change over time.
The main investment vehicles
Deposits
Money held with banks, building societies and Cash ISAs.
National Savings & Investments
Government-backed options such as Premium Bonds, Income Bonds and Investment Accounts.
Asset-backed investments
Shares, gilt-edged securities, unit trusts and investment bonds — each with its own mix of dividends, interest and potential capital gains.
ISAs
Cash ISAs and Stocks & Shares ISAs let you use your annual ISA allowance tax-efficiently.
OEICs and unit trusts
Pooled investments run by professional managers, giving you a broad spread across many holdings.
Investment bonds
Single-premium investments with no personal liability to basic-rate Income Tax or Capital Gains Tax, subject to the rules at the time.
Important — the risks
The performance of your investments is subject to risk. Its performance may fluctuate based on movements in the market and economic conditions. Capital is at risk. Currency movements may also affect the value of investments. You may get back less than you originally invested.
Past performance is not a reliable indicator of future performance. Tax treatment is based on an individual’s unique circumstances and may be subject to change.